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. Returns and Allowances (Invoice Amount) Merchandise (Invoice Amount) Freight Paid by Seller Freight Terms a. $8,550 $600 $1,650 FOB destination, 2/10, n/30 FOB shipping point, 1/10, n/30 b. 3,600 100 700 a. 7,362 x b. $ 2,971 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