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The single equivalent discount rate of the trade discount 5/4/1 is
re there 3 successive discounts 5%, 4% and 1% ? if 3 successive discount, a, b and c then net discount = a + b + c – (ab/100 + bc/100 + ca/100 – abc/10000) = 5 + 4 +1 – (20/100 + 4/100 + 5/100 – 20/10000) = 9.712 % = 0.09712
Expert answered|latefisher|Points 2049|
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Asked 6/7/2012 9:49:42 PM
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4/10, n/30 R.O.G. means a 4 percent discount can be taken within 10 days before recept of goods. This statement is False . The correct accounting interpretation is 4% discount for the payment within 10 days and the full amount to be paid within 30 days
Added 3/6/2013 8:26:00 PM
4/10, n/30 R.O.G. means a 4 percent discount can be taken within 10 days before receipt of goods. This is false. R.O.G. means the discount can be taken within 10 days AFTER receipt of goods.
Added 3/6/2013 8:54:23 PM
mouthofdasouth, please answer in a sentence that restates the question and provide a source for you answer.
Please read the basic rules
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