Introduction to accounting 8

8
a firm which purchased five items on credit at a cost of $80 each, less 25% trade discount, is entitled to deduct a cash discount of 5% if pays for them, in full, within
14 days of the invoice date.

If the firm pays within the above two-week period, it will have to pay

a.
$260
b.
$280
c.
$285
d.
None of the above

答案是285

5X80=400
after trade discount
400X0.75=300
after cash discount
300X0.95=285

5X80X75%x95%=285