PRC-1 · Chapter 10 · Question 95 of 100
Trade discounts provided to customers are:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Deducted from the list price before the sale is recorded in the accounting books.
Explanation
Trade discounts are bulk discounts given at the point of sale. They are deducted immediately from the invoice price, and the sale is recorded net of the trade discount.
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