Question

Beckett Co. sold merchandise on account for $11,700, terms 1/10, n/30. Freight charges of $360 were prepaid by the seller and added to the invoice. The customer returned $1,350 of merchandise before making the payment then paid the invoice within the discount period. What is the amount Beckett Co. received?

Answer 1

Answer:

Beckett Co received $   10.699,65‬

Explanation:

We have to determnate the balance of the invoice after the returned and the discount granted. We also have to receive the freight from the customer as we prepaid them to refund this amount against the customer:

invoice balance:

11,700 nominal less 1,350 return = 10,350

discount granted: 10,350 x 1% =           (10.35)

freight refund                                     360        

total cash proceeds:                      10.699,65‬