Determine the amount to be paid in full settlement of each of two invoices, (a) and (b),assuming that credit for returns and allowances was received prior to payment and thatall invoices were paid within the discount period.Returns andAllowancesFreightPaid by SellerFreight TermsMerchandise$ 90,000$1,000FOB shipping point, 1/10, n/30$15,000a.b.FOB destination, 2/10, n/30110,0001,5758,500

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Asked Dec 9, 2019
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Determine the amount to be paid in full settlement of each of two invoices, (a) and (b),
assuming that credit for returns and allowances was received prior to payment and that
all invoices were paid within the discount period.
Returns and
Allowances
Freight
Paid by Seller
Freight Terms
Merchandise
$ 90,000
$1,000
FOB shipping point, 1/10, n/30
$15,000
a.
b.
FOB destination, 2/10, n/30
110,000
1,575
8,500
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Determine the amount to be paid in full settlement of each of two invoices, (a) and (b), assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. Returns and Allowances Freight Paid by Seller Freight Terms Merchandise $ 90,000 $1,000 FOB shipping point, 1/10, n/30 $15,000 a. b. FOB destination, 2/10, n/30 110,000 1,575 8,500

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Particualrs Amount $ 90,000 $ 15,000 $ 75,000 $ 750 Merchandise value Less: Return and allowance Net merchandise value Less: Purchase discount ($75,000*1%) $ 74,250 Merchandise value, net discount Add: Freight paid by seller $1,000 $ 75,250 Total amount to be paid

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