determing the amount to be paid in full settlement of each of the following invo

Question

determing the amount to be paid in full settlement of each of the following invoices assuming that credit for returns and allowances were received prior to payment and that all invoices were paid within the discount period

Merchandise Transportation paid by seller returns and allowances

a) 4000 ----- FOB shipping point, 1/10, n/30 1200

b) 1500 $50 FOB shipping point, 2/10, n/30 700

c) 9500 ---- FOB destination, n/30 400

d) 2500 $75 FOB shipping point, 1/10, n/30 600

e) 5000 --- FOB destination, 2/10, n/30 ---

Please solve and help explain how did at least one of these, thanks!

Explanation / Answer

Hi,

Please find the answer as follows:

Invoice a = 4000 - (4000 - 1200)*1% = 3972

Invoice b = 1500 - (1500 - 700)*2% + 50 = 1534

Invoice c = 9500 - 400 = 9100

Invoice d = 2500 - (2500 -600)*1% + 75 = 2556

Invoice e = 5000

Thanks.

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