An invoice received included the following information: merchandise price, $5,000; terms 1/10, n/eom; FOB shipping point with prepaid freight of $520. Assuming that a credit for merchandise returned of $1,000 is granted prior to payment and that the invoice is paid within the discount period, what amount of cash should be paid by the buyer? a. $5,465 b. $1,000 c. $4,480 d. $5,000

An invoice received included the following information: merchandise price, $5,000; terms 1/10, n/eom; FOB shipping point with prepaid freight of $520. Assuming that a credit for merchandise returned of $1,000 is granted prior to payment and that the invoice is paid within the discount period, what amount of cash should be paid by the buyer? a. $5,465 b. $1,000 c. $4,480 d. $5,000