eBook Show Me How 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. $7,900 Freight Paid by Seller Credit for Refunds and Freight Terms Allowances $600 FOB shipping point, 2/10, n/30 4,000 500 FOB destination, 1/10, n/30 $1,250. 1,000 a. 7,117 V b. 3,440 X Check My Wirk 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.