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. required, round the answers to the nearest dollar Returns and Allowances Merchandise (Invoice Amount) Paid by Seller Freight (Invoice Freight Terms $6,050 b. 2,500 $500 FOB destination, 2/10, 1/30 600 FOB shipping point, 1/10, n/30 Amount) $1,300 700 . x Check My W & 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.