Walsh Retailers purchased merchandise with a list price of $50,000, subject to trade discounts of 20% and 10%, with no cash discounts allowable.Walsh should record the cost of this merchandise as

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The trade discounts are applied sequentially. First, a 20% discount on $50,000 reduces the price to $40,000. Then, a 10% discount on $40,000 reduces it further to $36,000.

Walsh Retailers Purchased Merchandise with a List Price of $50,000