A manufacturer printed the price of his goods as BD240 per article. He allowed a discount of 20% to the wholesaler who in his turn allowed a discount of 15% on the printed price to the retailer. If the prescribed rate of VAT on the goods is 5% and the retailer sells it to the consumer at the printed price. Instructions: Find the value added tax paid by the wholesaler and the retailer
A manufacturer printed the price of his goods as BD240 per article. He allowed a discount of 20% to the wholesaler who in his turn allowed a discount of 15% on the printed price to the retailer. If the prescribed rate of VAT on the goods is 5% and the retailer sells it to the consumer at the printed price. Instructions: Find the value added tax paid by the wholesaler and the retailer
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter10: Cash Receipts And Cash Payments
Section: Chapter Questions
Problem 7DQ
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A manufacturer printed the price of his goods as BD240 per article. He allowed a discount of 20% to the wholesaler who in his turn allowed a discount of 15% on the printed price to the retailer. If the prescribed rate of VAT on the goods is 5% and the retailer sells it to the consumer at the printed price.
Instructions:
Find the value added tax paid by the wholesaler and the retailer
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