Question

The merchandise subtotal on the invoice is $966.50. Shipping charges are $97.45. Delivery terms are fob store. Dating terms are 2/10, net 30. The invoice is dated November 5, and a check in the amount Of $947.17 was received on November 10. Is the payment correct?

Answer 1

the payment is correct

Step-by-step explanation:

Since the terms are FOB shipping point, the freight costs are paid separately by the buyer and are not included in the invoice.

Since the payment was made 5 days after the purchase, the buyer will get a discount.

total purchase cost = $966.50 x 98% = $947.17, so the payment is correct.