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. Returns and Allowances Merchandise Freight (Invoice (Invoice Amount) Paid by Seller Freight Terms Amount) $24,000 $300 FOB destination, 1/10, 1/30 31,500 FOB shipping point, 2/10, 1/30 a. $2,000 b. 250 2,500 28,440 X 28,440 x b. 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 Check My Work