eBook Calculator Determining Amounts to be Paid on Invoices

eBook Calculator Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Freight Paid by Returns and Allowances $1,000 1,100 Merchandise Seller a. $19,500 b. 9,200 C. 5,600 FOB shipping point, 1/10, n/30 FOB shipping point, 2/10, n/30 FOB destination, 2/10, n/30 FOB shipping point, 1/10, n/30 FOB destination, 1/10, n/30 $400 200 600 e. 3,400 a. Previous Next Cheak My Work

Solution

a Original invoice 19,500 Returns and allowances (1000) Discount (185) [(19,500 - 1000) x 1%] Amount paid 18,315 b Original invoice - merchandise 9,200 Original invoice - freight                 400 Returns and allowances           (1,100) Discount (162) [(9200 - 1,100) x 2%] Amount paid 8,338 c Original invoice - merchandise 5,600 Returns and allowances                  (500) Discount (102) [(5,600 - 500) x 2%] Amount paid 4,998 d Original invoice - merchandise         4,600 Original invoice - freight 200 Returns and allowances (600) Discount (40) [(4,600 - 600) x 1%] Amount paid 4,160 E Original invoice                                      3,400 Discount (34) [3,400 x 1%] Amount paid                                          3,366