Question 21
Purchase and Sale of GoodsEmeka ordered goods for his retail shop. The manufacturer sells the goods at retail price of ₦500 but would give it to Emeka at ₦400. What kind of discount did he get?
- A.Cash discount
- B.Trade discount
- C.Quantity discount
- D.Seasonal discount.
Show the answer and explanation
Answer: B (Trade discount)
Explanation
A reduction from the retail price given to a trader buying for resale is a trade discount.