Question

Details of invoices for purchases of merchandise are as follows: Merchandise Freight Terms Returns and Allowances(a) $2,800 $45 FOB shipping point, $200 1/10, n/30 (b) 7,600 60 FOB destination, n/30 800(c) 1,400 55 FOB shipping point, 600 2/10, n/30 (d) 500 50 FOB destination, 0 1/10, n/30Determine the amount to be paid in full settlement of each of the invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.(a) $(b) $(c) $(d) $

Answer 1

Answer:

A.$2,619

B.$6,800

C.$839

D.$495

Explanation:

Calculation to Determine the amount to be paid in full settlement of each of the invoices,

a) (2,800-200)*99%+45

=2,600*99%+45

=2,574+45

= $2,619

b) (7,600-800)

= $6,800

c)$1,400 – $600 – $16 + $55

=$784+$55

= $839

d)$500 –$5 = $495