Sold goods on credit at list price less 10% trade discount to:
D. Prince 25,000
S. Cato 14,000
What is the trade discount amount and how much does each person pays for the goods?
To find the trade discount amount and the amount paid by each customer, you need to use the given information.
First, let's calculate the trade discount amount. The trade discount is given as 10% of the list price.
To find the trade discount amount for each person, you can multiply their individual list prices by 10% (0.10):
For D. Prince: Trade discount = 25,000 * 0.10 = 2,500.
For S. Cato: Trade discount = 14,000 * 0.10 = 1,400.
Next, let's calculate how much each person pays for the goods after the trade discount.
To find the amount paid by each customer, you need to subtract the trade discount from the list price.
For D. Prince: Amount paid = List price - Trade discount = 25,000 - 2,500 = 22,500.
For S. Cato: Amount paid = List price - Trade discount = 14,000 - 1,400 = 12,600.
Therefore, the trade discount amount for D. Prince is 2,500, and they pay 22,500 for the goods. For S. Cato, the trade discount amount is 1,400, and they pay 12,600 for the goods.
To calculate the trade discount amount, we need to subtract the trade discount percentage from the list price of the goods. The trade discount percentage is 10%.
Step 1: Calculate the trade discount amount for each person.
For D. Prince:
Trade discount amount = List price x Trade discount percentage
= 25,000 x 0.10
= 2,500
For S. Cato:
Trade discount amount = List price x Trade discount percentage
= 14,000 x 0.10
= 1,400
Step 2: Calculate the amount each person pays for the goods.
For D. Prince:
Amount paid = List price - Trade discount amount
= 25,000 - 2,500
= 22,500
For S. Cato:
Amount paid = List price - Trade discount amount
= 14,000 - 1,400
= 12,600
Therefore, the trade discount amount for D. Prince is $2,500, and he pays $22,500 for the goods.
The trade discount amount for S. Cato is $1,400, and she pays $12,600 for the goods.