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Question
Details of invoices for purchases of merchandise are as follows:
| Returns and | ||||
| Merchandise | Freight | Terms | Allowances | |
| (a) | $2,800 | $45 | FOB shipping point, 1/10, n/30 | $200 |
| (b) | 7,600 | 60 | FOB destination, n/30 | 800 |
| (c) | 1,400 | 55 | FOB shipping point, 2/10, n/30 | 600 |
| (d) | 500 | 50 | FOB destination, 1/10, n/30 | 0 |
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.
Answer
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