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. If required, round the answers to the nearest dollar. Returns and Allowances Merchandise Freight (Invoice (Invoice Amount) Paid by Seller Freight Terms Amount) $8,700 b. 4,250 $600 400 FOB destination, 1/10, n/30 FOB shipping point, 2/10, n/30 $1,800 700 a. 6,831 3,871 X Feedback ▼Check My Work a & b. Under FOB shipping point, freight is paid by the buyer, while under FOB destination freight is the seller's expense. To determine the amount, first deduct the return before calculating the discount. Then calculate (Purchase - Return - Discount) + applicable freight.
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. If required, round the answers to the nearest dollar. Returns and Allowances Merchandise Freight (Invoice (Invoice Amount) Paid by Seller Freight Terms Amount) $8,700 b. 4,250 $600 400 FOB destination, 1/10, n/30 FOB shipping point, 2/10, n/30 $1,800 700 a. 6,831 3,871 X Feedback ▼Check My Work a & b. Under FOB shipping point, freight is paid by the buyer, while under FOB destination freight is the seller's expense. To determine the amount, first deduct the return before calculating the discount. Then calculate (Purchase - Return - Discount) + applicable freight.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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. If required, round the
answers to the nearest dollar.
Returns and
Allowances
Merchandise
(Invoice Amount) Paid by Seller
Freight
Freight Terms
(Invoice
Amount)
a.
$8,700
b.
4,250
$600
400
FOB destination, 1/10, n/30
FOB shipping point, 2/10, n/30
$1,800
700
b.
Feedback
6,831
3,871 X
▼ Check My Work
a & b. Under FOB shipping point, freight is paid by the buyer, while under FOB destination freight is the seller's expense. To determine the amount, first deduct the return before calculating the discount. Then calculate (Purchase - Return -
Discount) + applicable freight.
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