Question
Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was
Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.
| Merchandise | Freight Paid by Seller | Freight Terms | Returns and Allowances | |||||
| a. | $36,000 | $800 | FOB destination, 1/10, n/30 | $4,000 | ||||
| b. | 44,900 | 375 | FOB shipping point, 2/10, n/30 | 2,400 | ||||
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Financial Accounting Theory
Authors: Craig Deegan, H. Bierman
4th Edition
0071013148, 978-0071013147
