Chen Industries sold Rios Company furniture with a $12,500 list price. Sale terms were 2/15, n/60 FOB shipping point. Chen agreed to prepay the $85 freight. Rios pays the invoice within the discount period. What does Rios pay Chen?

Chen Industries sold Rios Company furniture with a $12,500 list price. Sale terms were 2/15, n/60 FOB shipping point. Chen agreed to prepay the $85 freight. Rios pays the invoice within the discount period. What does Rios pay Chen?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 3PB: Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc....

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Can you help me solve this general accounting question using valid accounting techniques?

Chen Industries sold Rios Company furniture with a
$12,500 list price. Sale terms were 2/15, n/60 FOB shipping
point. Chen agreed to prepay the $85 freight. Rios pays the
invoice within the discount period. What does Rios pay
Chen?

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