If merchandise is sold on account to a customer for $1,000, terms FOB shipping point, 1/10, n/30,

Question:

If merchandise is sold on account to a customer for $1,000, terms FOB shipping point, 1/10, n/30, and the seller prepays $50 in freight, the amount of the discount for early payment would be:

a. $0.

b. $5.00.

c. $10.00.

d. $10.50.

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