eBook Show Me How Calculator 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 (Invoice Amount) Freight Paid by Seller Returns and Allowances (Invoice Amount) Freight Terms a. $6,600 $300 FOB destination, 1/10, n/30 $1,300 b. 3,150 300 FOB shipping point, 2/10, n/30 1,050 a. $ b. s Feedback Check My Wor 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 - Discounts applicable treight Chied My Wor Purchase-Related Transactions A retailer is considering the purchase of 1,000 units of a specific item from either of two suppliers. Their offers are as follows: Supplier One: $34.80 a unit, 1/10, n/30, no charge for freight. Supplier Two: $35.00 a unit, 2/10, n/30, plus freight of $200. Price of Supplier One: Price of Supplier Two: Which of the two offers, Supplier One or Supplier Two, yields the lower price? Check My work Sales-Related Transactions After the amount due on a sale of $19,600, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment for a cash refund. The cost of the merchandise returned is $11,760. a. What is the amount of the refund owed to the customer? b. Journalize the entries made by the seller to record the return and the refund. If an amount box does not require an entry, leave it blank. (a) (b) Check My Work Previous Next