1. A sales invoice included the following information: merchandise price, $2,000; terms 1/10, n/eom; FOB shipping point with prepaid freight of $445 added to the invoice. Assuming that a credit for merchandise returned of $400 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller?

   a.$400

2. During the current year, merchandise is sold for $64,000 cash and for $89,000 on account. The cost of the goods sold is $99,450.

   What is the amount of the gross profit? $

3. A company using the periodic inventory system has inventory costing $169 on hand at the beginning of a period. During the period, merchandise costing $428 is purchased. At year-end, inventory costing $318 is on hand. The cost of goods sold for the year is

   a.$318

   b.$279

   c.$169

   d.$428