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Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for $25, 000. The seller paid freight costs of

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Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for $25, 000. The seller paid freight costs of $2, 000 and issued a credit memo for $10, 000 prior to payment. What is the amount of the cash discount allowable? a. $250 b. $130 c. $150 d. $170

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