Ch 6-2 Practice Exercises eBook e Show Me HowCalculator Print Item Freight Terms 1. PE.06-01 ALGO 2. PE 06-04 ALGO 3. PE 08-05.ALGO ermine the amount to be paid in full settlement of each of two linvoices (a) and (b), assuming that credit for returns and allowance round the answers to the nearest was received prior to payment and that all invoices were paid within the discount period. If required, dollar Freight Paid by Seller Returns and Allowances $1,150 1,000 Merchandise Freight Terms $9,200 ,600 $600 FOB shipping point, 2/10, n/30 FOB destination, 1/10, n/30 b, 200 8,489 b3,800 X Check My a & b. Under FOB shipping point, freight is paid by the buyer, while under FOB destination freight is the seller's expense. To determine the amount, first deduct the return before calculating the discount. Then calculate (Purchase- Return- Discount) + applicable freight