Question

"on sept. 1, jerry's lighting purchased merchandise with a list price of $12,500 with credit terms of 3/10, n/30; freight of $400 prepaid and added to the invoice. on sept. 3, jerry's returns $1,300 of the merchandise. if payment is made within the discount period, the total amount paid by jerry's lighting is:"

Answer 1

The total price is $ 12,500 but he prepaid $ 400 for fright which will need to be deducted since it was prepaid which brings to a total $ 12,100. Then there is a return of $ 1,300. which would drop the balance to $ 10,800