If a wholesaler offers a trade discount of 20% on a catalog item with a list price of $500, the buyer records the purchase at the net amount of list price minus trade discount.

Question

Quizplus · Accepted Answer

This is true. The net amount after the trade discount would be 80% of the list price ($500) which is $400. The buyer would record the purchase at the net amount of $400.

If a Wholesaler Offers a Trade Discount of 20% on a Catalog