Determine the amount to be paid in full settlement of each o

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 Seller Merchandise a. $19,700 b. 12,100 Returns and Allowances FOB destination, n/30 FOB shipping point, 2/10, n/30 FOB shipping point, 1/10, n/30 FOB shipping point, 2/10, n/30 FOB destination, 1/10, n/30 $1,000 $500 1,500 C. 8,000 700 4,400 200 600 2,800 a. b.$ C. d. e. s

Solution

1) Calculate amount paid within discount period :

a) (19700-1000) = $18700

b) (12100-1500)*98%+500 = $10888

c) (8000-700)*99% = $7227

d) (4400-600)*98%+200 = $3924

e) 2800*99% = $2772

2) Calculate missing amount :

a) 472500-83610 = $388890

b) 334075+83830 = $417905

c) 1245000-467975 = $777025

d) 437750+123675 = $561425