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. a. b. a. $ b. $ Merchandise (Invoice Amount) $8,900 4,050 7,827 X 3,087 X Feedback Freight Paid by Seller $600 600 Freight Terms FOB destination, 1/10, n/30 FOB shipping point, 2/10, n/30 Returns and Allowances (Invoice Amount) $1,600 900 ✓ 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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. If required, round the answers to the nearest dollar.

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.
a.
b.
a.
b. $
Merchandise
(Invoice Amount)
$8,900
4,050
7,827 X
3,087 X
Feedback
Freight
Paid by Seller
$600
600
Freight Terms
FOB destination, 1/10, n/30
FOB shipping point, 2/10, n/30
Returns and
Allowances
(Invoice
Amount)
$1,600
900
✓ 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.
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. a. b. a. b. $ Merchandise (Invoice Amount) $8,900 4,050 7,827 X 3,087 X Feedback Freight Paid by Seller $600 600 Freight Terms FOB destination, 1/10, n/30 FOB shipping point, 2/10, n/30 Returns and Allowances (Invoice Amount) $1,600 900 ✓ 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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