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. a. b. a. b. Freight (Invoice Amount) Paid by Seller $300 Merchandise $24,000 31,500 250 Freight Terms FOB destination, 1/10, n/30 FOB shipping point, 2/10, n/30 Returns and Allowances (Invoice Amount) $2,000 2,500

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