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:
Freight Customer Returns
Merchandise | Paid by Seller | 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 | —
Answer:
a. $10,750 ($14,000 – $3,250)
b. $17,236 [($21,200 – $4,000) – ($17,200 × 2%) + $380]
c. $15,345 [($16,400 – $900) – ($15,500 × 1%)]
d. $6,424 [($7,500 – $1,200) – ($6,300 × 2%) + $250]
e. $28,512 [$28,800 – ($28,800 × 1%)]