Freight Terms Determine the amount to be paid in full settlement of each of two

Question

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 recelved prior to payment and that all invoices were paid within the discount period. If required, round the answers to the nearest dolar Freight Paid by Seller Returns and Allowances $1,600 1,200 Merchandise Freight Terms FOB destination, 1/10, n/30 FOB shipping point, 2/10, n/30 a. $6,800 $200 b. 3,700 400 Basic Calculator 5,348 x 5348 b. $1,584 CE

Explanation / Answer

Calculate amount to be paid :

a) Amount to be paid = (6800-1600)*99% = 5148

b) Amount to be paid = (3700-1200)*98%+400 = 2850

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