A wholesale business sells goods with a list price of $1,200 and a trade discount of 30 percent. The amount credited to the Sales account for the sale is

Question

Quizplus · Accepted Answer

To find the amount credited to the Sales account, we need to calculate the net price of the goods after the trade discount has been applied:

Net price = List price - (Trade discount rate x List price)
Net price = $1,200 - (0.30 x $1,200)
Net price = $1,200 - $360
Net price = $840

Therefore, the amount credited to the Sales account for the sale is $840. Option B is the correct answer.

A Wholesale Business Sells Goods with a List Price of $1,200