This guide explains the concept of discounts, how they affect sales prices, and provides a clear example to illustrate their application. This ensures that discounts are accurately applied, giving customers a clear understanding of the savings they receive.
A discount is a reduction applied to the original sales price of a product or service. In our case, the discount can be offered on an item or the whole transaction as a fixed amount, reducing the total amount that the customer needs to pay.
Total Amount Due: $100 - (Discount Amount) => $90Therefore, with a discount amount of $10, we calculate the rate from the whole sales price, which is 10% and reduce 10% from each item price.The discount amount on a $100 sales price is $10, leaving $90 as the final sales price.
