Question Content Area

An invoice received included the following information: merchandise price, $3,800; terms 1/10, n/eom; FOB shipping point with prepaid freight of $592. Assuming that a credit for merchandise returned of $800 is granted prior to payment and that the invoice is paid within the discount period, what amount of cash should be paid by the buyer?

a. $3,800

b. $3,562

c. $4,348

d. $800