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. Merchandise Freight Paid by Seller Terms Returns and Allowances a. $14,200 - FOB shipping point, 1/10, n/30 $700 b. 10,700 $400 FOB shipping point, 2/10, n/30 1,300 c. 5,700 - FOB destination, 1/10, n/30 500 d. 3,800 200 FOB shipping point, 2/10, n/30 500 e. 1,500 - FOB destination, 2/10, n/30 -

Answer 1

a. Amounts to be Paid on Invoice = $12,150

b. Amounts to be Paid on Invoice = $7,920

c. Amounts to be Paid on Invoice = $4,680

d. Amounts to be Paid on Invoice = $2,840

e. Amounts to be Paid on Invoice = $1,200

Step-by-step explanation:

a. $14,200 - FOB shipping point, 1/10, n/30 $700

Amounts to be Paid on Invoice = ($14,200 - $700) * (10/10 - 1/10) = $12,150

b. 10,700 $400 FOB shipping point, 2/10, n/30 1,300

Amounts to be Paid on Invoice = (($10,700 - $1,300) * (10/10 - 2/10)) + $400 = $7,920

c. 5,700 - FOB destination, 1/10, n/30 500

Amounts to be Paid on Invoice = ($5,700 - $500) * (10/10 - 1/10) = $4,680

d. 3,800 200 FOB shipping point, 2/10, n/30 500

Amounts to be Paid on Invoice = (($3,800 - $500) * (10/10 - 2/10)) + $200 = $2,840

e. 1,500 - FOB destination, 2/10, n/30 -

Amounts to be Paid on Invoice = $1,500 * (10/10 - 2/10) = $1,200