A wholesale firm made sales with a list price of $1,500 and trade discounts of 25 and 15 percent.Calculate the amount the firm will use to record the sale in the sales journal.
A) Invoice price will be equal to $956.25
B) Invoice price will be equal to $900
C) Invoice price will be equal to $600
D) Invoice price will be equal to $543.75

Question

Quizplus · Accepted Answer

The invoice price is calculated by applying the trade discounts sequentially: $1,500 - 25% = $1,125, then $1,125 - 15% = $956.25.

A Wholesale Firm Made Sales with a List Price of $1,500