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. Merchandise Freight Paid by Seller Freight Terms Credit for Refunds and Allowances a. $120,800 $1,300 FOB shipping point, 1/10, n/30 $20,100 b. 147,700 2,100 FOB destination, 2/10, n/30 11,400
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. Merchandise Freight Paid by Seller Freight Terms Credit for Refunds and Allowances a. $120,800 $1,300 FOB shipping point, 1/10, n/30 $20,100 b. 147,700 2,100 FOB destination, 2/10, n/30 11,400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
Merchandise |
Freight Paid by Seller |
Freight Terms |
Credit for Refunds and Allowances |
|||||
| a. | $120,800 | $1,300 | FOB shipping point, 1/10, n/30 | $20,100 | ||||
| b. | 147,700 | 2,100 | FOB destination, 2/10, n/30 | 11,400 |
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