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An item is subject to a 20% trade discount. Its list price is $1 000. What is the sale price?

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Question added by Shazia Anees , Assistant Manager Finance , Arham Trading Company
Date Posted: 2015/08/23
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option B is the right answer.

Shoaib Akhtar
by Shoaib Akhtar , Accounts & Finance Assistance , PRASHANT PROJECTS LTD

(B) sale price will be $800

Deleted user
by Deleted user

The correct answer is B: $800

Asad Ahmed
by Asad Ahmed , Manager Finance & Company Secretary , Connect Communications Pvt. Ltd.

The sale price of the item is $800.

Badar Khan
by Badar Khan , Accounts cum administrative assistant , Al Qassimia Drivng Training Centre.Sharjah

the sale price is800 (1000-200) ..the trade discount is deducted at the spot ..

Muhammad Faisal
by Muhammad Faisal , Finance Manager , Construction and Rental Asad Building & Contracting L.L.C

Generally speaking, in some cases list price is still original price on which the discount has to be calculated. If that is the case then it will be $800.

 

But we are certain that the list price marked as the discounted price then our original amount will be1200

JULIUS MURE MWARO
by JULIUS MURE MWARO , ACCOUNTANT , said abeid said & co.

THE RIGHT ANSWER IS OPTION B $800

 

Yewulsew Ayele
by Yewulsew Ayele , Branch Manager , NIB International Bank S.C

The sales prize of this item would be $800

Zehab Osman
by Zehab Osman , Accountant , Aldar Consultancy Co.

------------------Answer is B: $800-------------------

Samar Abbas Khan Khan
by Samar Abbas Khan Khan , Admin Officer , Pak Veterinary Clinic & Services

no doubt sale price will be $800 as(20% of $1000) $200 would be deducted from list price.

Falah Musthafa
by Falah Musthafa , Audit Executive , MIM International Consultancies

$800  would be the Sale price of the item after20% discount. Trade discount is provided during sales on the list price where as Cash Discount is provided during the payment of the invoice. So had it been a Cash Discount on an item which had $1,000/- list price, the sale price would also have been $1,000/-

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