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A company purchased $10,200 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping points. The freight charge was $600 and was prepaid by the seller. On June 20, it returned $960 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. What is the cash paid on June 24?

A company purchased $10,200 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping points. The freight charge was $600 and was prepaid by the seller. On June 20, it returned $960 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. What is the cash paid on June 24?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A company purchased $10,200 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping points. The freight charge was $600 and was prepaid by the seller. On June 20, it returned $960 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. What is the cash paid on June 24?
Transcribed Image Text:A company purchased $10,200 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping points. The freight charge was $600 and was prepaid by the seller. On June 20, it returned $960 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. What is the cash paid on June 24?
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