Elegant Gardens, a wholesale firm, made sales using the following list prices and trade discounts. What amount will be recorded for each sale in the sales journal? List price of $6,000 and trade discounts of 40 and 15 percent List price of $7,300 and trade discounts of 25 and 8 percent List price of $7,100 and trade discounts of 20 and 10 percent

Elegant GArdens

The amount recorded for each sale in the Sales Journal:

1. List price of $6,000 and trade discounts of 40 and 15 percent

a. $3,600 (with 40% trade discount).

b. $5,100 (with 15% trade discount).

2.List price of $7,300 and trade discounts of 25 and 8 percent

a. $5,475 (with 25% trade discount).

b. $6,716 (with 8% trade discount).

3.List price of $7,100 and trade discounts of 20 and 10 percent

a. $5,680 (with 20% trade discount).

b. $6,390 (with 10% trade discount).

Explanation:

1. List price of $6,000 and trade discounts of 40 and 15 percent

a. $3,600 (with 40% trade discount)

= $6,000 * (1-40%)

= $6,000 * (1-0.4)

b. $5,100 (with 15% trade discount)

= $6,000 * (1-15%)

2.List price of $7,300 and trade discounts of 25 and 8 percent

a. $5,475 (with 25% trade discount).

= $7,300 * (1-25%)

b. $6,716 (with 8% trade discount).

= $7,300 * (1-8%)

3.List price of $7,100 and trade discounts of 20 and 10 percent

a. $5,680 (with 20% trade discount).

= $7,100 * (1-0.2)

b. $6,390 (with 10% trade discount).

= $7,100 * (1-10%)

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