Answer
The net service revenue is $99,000.
Explanation
Net sales is calculated by deducting all the discount from the sales value. In this question Trade discount is deducted first and then there is an offer of 1% discount if payment is made within 10 days of sale. The payment is made within the discount period, so, the receipt is eligible for 1% discount. after deducting both discounts Net sales is $99,000.
Sales = $105,000
Sales Net of Trade discount = $105,000 - $5,000
Gross Sales = $100,000
Cash / Settlement discount = 1% of Gross sales = 0.01 x $100,000 = $1,000
Net Sales = $100,000 - $100,000 = $99,000
