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. b. Merchandise Freight Paid by Seller Credit for Refunds and Freight Terms Allowances $58,600 $1,300 FOB destination, 1/10, n/30 $6,500 73,100 600 FOB shipping point, 2/10, n/30 3,900 52,879 X 67,816 X 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 deducti the return before calculating the discount. Then calculate (Purchase Return - Discount) + applicable freight.