eBook Animated Example Exercise

Freight Terms

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. If required, round the answers to the nearest dollar.

Merchandise Freight

Paid by Seller Freight Terms Returns and

Allowances

a. $5,050 $300 FOB destination, 2/10, n/30 $1,600

b. 3,600 500 FOB shipping point, 1/10, n/30 1,200

a. $

b. $