Question

A customer makes a credit purchase of 1197 and timely pays the amount due less a 2 discount. the discount is recorded?

Answer 1

The amount of discount that the customer incurred by paying the amount due on time is calculated by multiplying the discount rate with the given value. This is calculated as below.

(0.02)(1197) = 23.94

Hence, the amount of discount calculated and recorded is equivalent to 23.94.