Calculator Freight Terms Determine the amount to be paid in

Calculator Freight Terms Determine the amount to be paid in full settlement of each of two invoices (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. If required, round the answers to the nearest dollar. Freight Paid by Seller Returns and Allowances $1,650 Merchandise Freight Terms FOB shipping point, 2/10, n/30 FOB destination, 1/10, n/30 a. $9,400 $300 b. 4,100 300 1,100 7,895 b. 2,970 Next 10:24 PM 6/10/201 Previous ^

Solution

working:

a.freight terms : FOB shipping point => freight is to be added to amount to be paid.

amount to be paid = [(9400 - 1650) * (1-0.02discount) ] + 300

=>7,595 + 300

=>7,895.

b.FOB destination => freight cost need not be added.

amount to be paid = (4100 - 1100) *(1-0.01 discount)

=>3000*0.99

=>$2,970.

a	$7,895
b.	$2,970