Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Merchandise Freight Paid by Seller Freight Terms Returns and Allowances (a) $ 4 , 500 $ 140 FOB shipping point, 2 / 10 , net 30 $ 1 , 200 (b) 7 , 650 $ 200 FOB destination, 1 / 10 , net 45 450 \begin{array} { | l | r | r | c | r | } \hline & extbf { Merchandise } & \begin{array} { c } extbf { Freight Paid by } \ extbf { Seller }\end{array} & extbf { Freight Terms } & \begin{array} { c } extbf { Returns and } \ extbf { Allowances }\end{array} \\hline ext { (a) } & \$ 4,500 & \$ 140 & \begin{array} { l } ext { FOB shipping point, } \2 / 10 , ext { net } 30\end{array} & \$ 1,200 \\hline ext { (b) } & 7,650 & \$ 200 & \begin{array} { l } ext { FOB destination, } \1 / 10 , ext { net } 45\end{array} & 450 \\hline\end{array} (a) (b) Merchandise $4 , 500 7 , 650 Freight Paid by Seller $140 $200 Freight Terms FOB shipping point, 2/10 , net 30 FOB destination, 1/10 , net 45 Returns and Allowances $1 , 200 450

Question

Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.     Merchandise     Freight   Paid   by     Seller     Freight   Terms     Returns   and     Allowances    (a)  $ 4 , 500 $ 140  FOB shipping point,  2 / 10 ,  net  30 $ 1 , 200  (b)  7 , 650 $ 200  FOB destination,  1 / 10 ,  net  45 450 \begin{array} { | l | r | r | c | r | } \hline  &  	extbf { Merchandise }  &  \begin{array} { c } 	extbf { Freight Paid by } \	extbf { Seller }\end{array}  &  	extbf { Freight Terms }  &  \begin{array} { c } 	extbf { Returns and } \	extbf { Allowances }\end{array} \\hline 	ext { (a) }  &  \$ 4,500  &  \$ 140  &  \begin{array} { l } 	ext { FOB shipping point, } \2 / 10 , 	ext { net } 30\end{array}  &  \$ 1,200 \\hline 	ext { (b) }  &  7,650  &  \$ 200  &  \begin{array} { l } 	ext { FOB destination, } \1 / 10 , 	ext { net } 45\end{array}  &  450 \\hline\end{array}  (a)   (b)  ​  Merchandise  $4 , 500 7 , 650 ​  Freight Paid by   Seller  ​ $140 $200 ​  Freight Terms   FOB shipping point,  2/10 ,  net  30 ​  FOB destination,  1/10 ,  net  45 ​ ​  Returns and   Allowances  ​ $1 , 200 450 ​ ​

Veronica Redway · Accepted Answer

Final Answer : (a) $3,374(b) $7,128

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