Determining Amounts to be Paid on Invoices Determine the amount to be paid in fu
ID: 2499734 • Letter: D
Question
Determining Amounts to be Paid on Invoices
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.
a. $
b. $
c. $
d. $
e. $
Merchandise Freight Paid by Seller Returns and Allowances a. $14,800 - FOB destination, n/30 $700 b. 11,200 $400 FOB shipping point, 1/10, n/30 1,300 c. 8,500 - FOB shipping point, 2/10, n/30 800 d. 2,900 100 FOB shipping point, 2/10, n/30 400 e. 2,700 - FOB destination, 1/10, n/30 -Explanation / Answer
Amount to be paid
a. ($14800 - $700) = $14100
b. $11200 - 1300 - {1% * (11200 - 1300) } + $400
= 9900 - (1% * 9900) + 400
= $10201
c. $8500 - 800 - (2% * 7700)
= 7700 - 154
= $7546
d. $2900 - 400 - (2% *2500) + 100
= 2500 - 50 + 100
= $2550
e. $2700 - (1% * 2700)
= 2700 - 27
= $2673
Note:- Allowance and return will be treated as discount in sales , discount rate will be of (merchandise - allowance amount) and frieght will be added back after calculating discount
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