c. Information and communication d. Monitoring 11. Details of invoices for purch

Question

c. Information and communication d. Monitoring 11. Details of invoices for purchases of merchandise are as follows: portation Terms a. $1,000 FOB Shipping Point, 1/10,n30 b. 5,000 C. 4,000 30 50 $200 400 FOB destination, n/30 FOB shipping point, 2/10, n/30 FOB destination, 150 d. 5,000 45 1/10, n/30 Determine the amount to be paid in full settlement of each of the invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Also assume that the seller has prepaid the transportation expenses

Explanation / Answer

case-A Amount paid in full settlement: Cost of Inventory Purchases 1000 Lless: Returns and allowances -25 Net Amount due 975 Less: Discount @1% 9.75 Net amount to be paid for inventory 965.25 Add: Frieght in paid by seller 25 Amount to be paid on full settlement 990.25 Case-B: Amount paid in full settlement: Cost of Inventory Purchases 5000 Lless: Returns and allowances -400 Net Amount due 4600 Net amount to be paid 4600 Case-C: Amount paid in full settlement: Cost of Inventory Purchases 4000 Lless: Returns and allowances -150 Net Amount due 3850 Less: Discount @2% 77 Net amount to be paid for inventory 3773 Add: Frieght in paid by seller 50 Amount to be paid on full settlement 3823 Case-D: Amount paid in full settlement: Cost of Inventory Purchases 5000 Lless: Returns and allowances 0 Net Amount due 5000 Less: Discount @ 1% 50 Amount paid on full settlement 4950

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.