Determining Amounts to be Paid on Invoices Determine the amount to be paid in fu
ID: 2518762 • Letter: D
Question
Determining Amounts to be Paid on Invoices
Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period:
a. $
b. $
c. $
d. $
e. $
Merchandise Freight Paid by Seller Customer Returns and Allowances a. $14,000 - FOB destination, n/30 $3,250 b. 21,200 $380 FOB shipping point, 2/10, n/30 4,000 c. 16,400 - FOB shipping point, 1/10, n/30 900 d. 7,500 250 FOB shipping point, 2/10, n/30 1,200 e. 28,800 - FOB destination, 1/10, n/30 -Explanation / Answer
Merchandise Freight Paid by Seller Customer Returns and Allowances Amount for full settlement Calculation Remarks a. $14,000 - FOB destination, n/30 $3,250 $10,750 (14000-3250) Merchandise-Return b. 21,200 $380 FOB shipping point, 2/10, n/30 4,000 $17,236 (21200+380-4000-0.02*(21200-4000) FOB shipping point, hence buyer need to reimburse frieght expense(Total amount=merchandise+Freight-Return -Discount c. 16,400 - FOB shipping point, 1/10, n/30 900 15345 (16400-900-0.01*(16400-900)) Merchandise-Return-discount d. 7,500 250 FOB shipping point, 2/10, n/30 1,200 6487 (7500+250-1200-0.02*(7500-1200) FOB shipping point, hence buyer need to reimburse frieght expense(Total amount=merchandise+Freight-Return -Discount e. 28,800 - FOB destination, 1/10, n/30 - 28512 (28800-0.01*28800) Merchandise-discount AMOUNT TO BE PAID ON INVOICES a $10,750 b $17,236 c $15,345 d $6,487 e $28,512
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