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 allowano and that all invoices were paid within the discount period. If required, round the answers to the nearest dollar. Merchandise Freight Paid by Seller Freight Terms Returns and Allowances $9,550 $600 $1,800 FOB destination, 2/10, n/30 FOB shipping point, 1/10, n/30 3,200 700 900 a. $ 8,195 x b. $2,277 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, the discount. Then calculate (Purchase - Return - Discount) + applicable freight. Learning Objective 2.

Answer 1

Calculate amount paid

	a	b
Purchase	9550	3200
Less: Purchase return and allowance	-1800	-900
Less: Purchase discount	7750*2% = -155	2300*1% = -23
Net purchase	7595	2277
Freight		700
Amount paid	7595	2977