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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 allowances was received prior to payment and that all invoices were paid within the discount period.
Merchandise (Invoice Amount) |
Freight Paid by Seller |
Freight Terms | Returns and Allowances (Invoice Amount) |
|||||
a. | $24,000 | $300 | FOB destination, 1/10, n/30 | $2,000 | ||||
b. | 31,500 | 250 | FOB shipping point, 2/10, n/30 | 2,500 |
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