Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Net Sales

Financial Accounting

4. Merchandising Operations

Net Sales

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Multiple Choice

A backpack normally costs $25 but is on sale for $21. What is the percentage discount applied to the backpack?

20%

12%

16%

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Verified step by step guidance

Step 1: Understand the formula for calculating the percentage discount. The formula is: $ \text{Percentage Discount} = \frac{\text{Original Price} - \text{Sale Price}}{\text{Original Price}} \times 100 $.

Step 2: Identify the values given in the problem. The original price of the backpack is $25, and the sale price is $21.

Step 3: Substitute the given values into the formula. $ \text{Percentage Discount} = \frac{25 - 21}{25} \times 100 $.

Step 4: Simplify the numerator by subtracting the sale price from the original price. This gives $ 25 - 21 = 4 $.

Step 5: Divide the result by the original price and multiply by 100 to calculate the percentage discount. $ \text{Percentage Discount} = \frac{4}{25} \times 100 $.