DISCOUNTS

​What are the two types of discounts?

​

​Types of Discounts

• ​Trade Discount

• ​Cash Discount

​How to get the trade discount?

​

​Find the net price of a tablet that is listed at ₱ 10,999 and has trade discount rate of 15%.

​Sample Problem:

​Solutions:

​ Trade Discount = List Price × Trade Discount Rate

       = ₱10,999 × 0.15

       =₱1,649.85

Net Price  = List Price  - Trade Discount

  = ₱10,999 - ₱1,649.85

  = ₱9,349.15

​How to get the cash discount?​

​Sample Problem:

​Braniac Enterprisers received an invoice of ₱7,500 for school supplies dated 4 July with terms 10/15, n/30. If the invoice is paid on 15 July, how much cash discount did Braniac Enterprisers, receive from the supplier? How much should Braniac Enterprisers pay? A discount of 10% will be given since the invoice was paid within 15 days.

​Solutions:

​Cash Discount = Invoice Price × Cash Discount Rate

     = ₱7,500 × 0.10

     = ₱750

Payment  = Invoice Price – Cash Discount

  = ₱7,500 - ₱750

  = ₱6,750