1. 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

   a.	$
   b.	$

   Feedback

   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.