WAEC - Accounts Principles Of Accounts (2018 - No. 12)

Tei Ltd offered 1,560 units of magazines at N60 each. Trade discount is 10%  and cash discount is 10% within 30 days and 5% within 60 days.

The amount payable if payment is made on the 40th day is...........

88,920
84,240
80,028
72,025

Explanation

60 x 1560 = 93600 

Cash discount = \(\frac{5}{100}\) x 93600 = 4680

93600 - 4680 = 88920

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