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(A) $200 (B) $800 (C) $1000 (D)$1200
Option B is the right answer.
(B) sale price will be $800
The sale price of the item is $800.
the sale price is800 (1000-200) ..the trade discount is deducted at the spot ..
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
THE RIGHT ANSWER IS OPTION B $800
The sales prize of this item would be $800
------------------Answer is B: $800-------------------
no doubt sale price will be $800 as(20% of $1000) $200 would be deducted from list price.
$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/-
