Question

Question 3 6 Points Determine the amount to be paid in full settlement of the invoice assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period, Merchandise Freight paid by seller Freight terms Returns and Allowances 119000 8000 FOB shipping point, 1/10, Net30 27000 Add your answer

Answer 1

А B с D 1 Particulars Amount 2 Merchandise $ 119,000 3 Add: Freight paid by seller $ 8,000 4 Less:Returns and allowances $ 27,000 5 Less: Cash discount $ 920 6 Amount to be paid $ 99,080 7 8 Note: In FOB shipping point sale, freight charges are paid by buyer.

B Amount 119000 А 1 Particulars 2 Merchandise 3 Add: Freight paid by seller 4 Less:Returns and allowances 5 Less: Cash discount 6 Amount to be paid 8000 27000 =+(B2-B4)*1% =+B2+B3-B4-B5