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 Paidby SellerFreight TermsReturns andAllowancesa.$13,200 $215 FOB Shipping Point, 1/10, net 30$1,300 b.$10,400 $56 FOB Destination, 2/10, net 45$2,300 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 paidwithin the discount period.a. $13,200b.$10,400a.Merchandiseb.Freight Paidby Seller$215$56Freight TermsFOB Shipping Point, 1/10, net 30FOB Destination, 2/10, net 45Returns andAllowances$1,300$2,300

MERCHANDISE PURCHASED = MERCHANDISE - RETURN ALLOWANCE = $13,200 - $1,300 = $11,900 = MERCHANDISE…

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. a. $13,200 b. $10,400 a. Merchandise b. Freight Paid by Seller $215 $56 Freight Terms FOB Shipping Point, 1/10, net 30 FOB Destination, 2/10, net 45 Returns and Allowances $1,300 $2,300

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. a. $13,200 b. $10,400 a. Merchandise b. Freight Paid by Seller $215 $56 Freight Terms FOB Shipping Point, 1/10, net 30 FOB Destination, 2/10, net 45 Returns and Allowances $1,300 $2,300

Corporate Financial Accounting

14th Edition

ISBN:9781305653535

Author:Carl Warren, James M. Reeve, Jonathan Duchac

Publisher:Carl Warren, James M. Reeve, Jonathan Duchac

Chapter5: Accounting For Merchandising Businesses

Section: Chapter Questions

Problem 5.4BE

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	Merchandise	Freight Paid by Seller	Freight Terms	Returns and Allowances
a.	$13,200	$215	FOB Shipping Point, 1/10, net 30	$1,300
b.	$10,400	$56	FOB Destination, 2/10, net 45	$2,300