Question 10

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. Credit for Freight Refunds and Merchandise Paid by Seller Freight Terms Allowances a. $7,300 $700 FOB shipping point, 1/10, n/30 $1,400 b 4,650 200 FOB destination, 2/10, n/30 1,200