Question 12
Cash BookUse the following information to answer questions 11 and 12.
Tei Ltd offered 1,560 units of a magazine at ₦60.00 each. Trade discount is 10% and cash discount is 10% within 30 days and 5% within 60 days.
The cash discount allowed on the 50th day is
- A.₦9,360.
- B.₦8,424.
- C.₦4,680.
- D.₦4,212.
Show the answer and explanation
Answer: D (₦4,212.)
Explanation
5% × 84,240 = ₦4,212.