eBook Show Me How Calculator Print Item 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. Merchandise (Invoice Amount) $24,000 Freight Paid by Seller Returns and Allowances (Invoice Amount) a. $300 Freight Terms FOB destination, 1/10, 1/30 FOB shipping point, 2/10, 1/30 $2,000 b. 31,500 250 2,500 a. b. Feedback Check My Work 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 Newt Cost of Goods Sold Based on the following data, determine the cost of goods sold for July: Estimated returns of July sales $34,900 Inventory, July 1 190,850 Inventory, July 31 160,450 Purchases 1,126,000 Purchases returns and allowances 46,000 Purchases discounts 23,000 Freight in 17,500 1,104,900X Feedback Check My Work The cost of merchandise sold section includes the beginning inventory, plus net inventory