When a company sells a $100 service with a 20% trade discount,$80 of revenue is recognized.

Name: When a company sells a $100 service with a 20% trade discount,$80 of revenue is recognized.
Brand: Quizplus
Rating: 4.9 (54 reviews)

Question

Quizplus · Accepted Answer

A 20% trade discount means that the customer only pays 80% of the original price, which is $80 in this case. The revenue recognized by the company is still $100, as the discount is not deducted from revenue but rather from the total price the customer pays.

When a Company Sells a $100 Service with a 20