Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise Freight Paidby SellerFreight TermsReturns andAllowancesa.$13,200 $215 FOB Shipping Point, 1/10, net 30$1,300 b.$10,400 $56 FOB Destination, 2/10, net 45$2,300 Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paidwithin the discount period.a. $13,200b.$10,400a.Merchandiseb.Freight Paidby Seller$215$56Freight TermsFOB Shipping Point, 1/10, net 30FOB Destination, 2/10, net 45Returns andAllowances$1,300$2,300

MERCHANDISE PURCHASED = MERCHANDISE - RETURN ALLOWANCE = $13,200 - $1,300 = $11,900 = MERCHANDISE…

Answered: Determine the amount to be paid in full…

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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Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.

	Merchandise	Freight Paid by Seller	Freight Terms	Returns and Allowances
a.	$13,200	$215	FOB Shipping Point, 1/10, net 30	$1,300
b.	$10,400	$56	FOB Destination, 2/10, net 45	$2,300

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