Cash Discount - How to interpret and solve problems

This video
i) explains the concept of cash discounts
ii) distinguishes cash discounts from trade discounts
iii) describes cash discount dating methods (Ordinary, EOM, ROG)
iv) demonstrates the application of cash discounts with examples.

[@jakubosobka4414]

The penalty is 1% per month and that should be accounted for. I mean the payment in d) was only 12 days late not a full month so the correct answer is 7800 (1+0.01*12/30) = 7831,2, isn't it?

[@joshemman]

Technically, yes. However, the unstated assumption (sacrificed for brevity) here is that the 1% applies for late payment up to 1 month. In essence, the 1% penalty is paid if the due date is violated for up to 1 month, and another 1% thereafter. In some other jurisdictions, where the 1% is being spread over the month like you did, the calculation will be spread over the year as 7800(1+0.01*(12/365)*12) Thanks for sharing, Jakub. I will pin this post to clarify it for other viewers.

[@jakubosobka4414]

@@joshemman oh I see, thank you also for clarification. That makes sense :)

[@randolphorevillo5275]

ABM student here jusq wala man lang guide yung binigay na modules. kaane.

[@TMK264]

Thank You. Your videos are so informative, educational and help to really put the BA II Plus to good work.

[@jordankopal1412]

Thanks for the helpful video.

[@methemediocre]

thank youuuuuuuuuuu

[@TheCvm229]

Nice teacher.. yu helped me to perform my assignment

[@dannynnanna4574]

great work

[@jasspreet6523]

Very informative, thankyou!

[@spiderscurry5614]

thank you so much

[@BrianGajudo]

Helpful❤

[@smritibartaula17]

Thank you ♥

[@jd5787]

Great info thanks! What happens if the treasury dept applies a CoC of 10% or 25%. I read it is to drive suppliers behavior to provide longer payment terms but I dont really understand the basis. thank you

[@laudnelson9591]

Why do you subtract the rates from the amount to be paid please?

[@5cmuhammadirfanbinmohammad934]

Boi, You really did a great job Thanks for the information , i appreciate it so much

[@hibaqusous394]

Can you make translate Arabic

[@renarielladayrit4214]

Thank you!!! This is so helpful. You are brilliant.

[@tangerine5906]

This was so helpful, thank you!

[@Gurleenkaur-qy6ld]

Thanks a lot God bless

[@AnthonyFoimae]

Thank you.

[@joshemman]

You're welcome, Anthony.

[@lovevender9814]

Thankyou sir

[@FeeBoxMerchantServices]

this is helpful

[@philippalaribambilla8439]

Very effective sir

[@Adrian-cn5rk]

Do you have any videos on partial payments?

[@joshemman]

Sorry not at this point. For a partial partial payment, determine the amount credited by calculating: (amount paid)/(1-d) d = rate of discount qualified for Then Amount Owing = Total Owing - Amount Credited

[@Adrian-cn5rk]

@@joshemman thank you so much!

[@miho7097]

Thank youuuu sensei~💖

[@muhammadluqmankhan08]

[@fankcarlnollnopaitolno2794]

hi sir.. how about net 30?

[@joshemman]

n/30 means the net amount must be paid within 30 days. In some cases (beyond the scope of these examples) a penalty might be imposed if not paid within that window.

[@fankcarlnollnopaitolno2794]

@@joshemman thak you so much sir