A sales invoice included the following information: merchandise price, $5,600; terms 1/10, n/eom; FOB shipping point with prepaid freight of $420 added to the invoice. Assuming that a credit for merchandise returned of $1,100 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.$5,960

b.$4,875

c.$1,100

d.$5,600

$________

A company using the periodic inventory system has inventory costing $182 on hand at the beginning of a period. During the period, merchandise costing $404 is purchased. At year-end, inventory costing $331 is on hand. The cost of goods sold for the year is

a.$255

b.$331

c.$182

d.$404