 | Discounts: Trade and Cash
Learning Objectives
LU 7–1: Trade Discounts—Single and Chain (Includes Discussion of Freight)- Calculate single trade discounts with formulas and complements.
- Explain the freight terms FOB shipping point and FOB destination.
- Find list price when net price and trade discount rate are known.
- Calculate chain discounts with the net price equivalent rate and single equivalent discount rate.
LU 7–2: Cash Discounts, Credit Terms, and Partial Payments- List and explain typical discount periods and credit periods that a business may offer.
- Calculate outstanding balance for partial payments.
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