Honesty purchased an item with a catalog price of P10,000. The invoice dated March 1 indicates a term of 20%, 2/10, n/30. The invoice also indicates that the term of the shipment is FOB shipping point. The seller paid the freight of P1,000 since the shipping company refuses to load the cargo unless the freight is prepaid. How much is the invoice amount of the purchase?
Honesty purchased an item with a catalog price of P10,000. The invoice dated March 1 indicates a term of 20%, 2/10, n/30. The invoice also indicates that the term of the shipment is FOB shipping point. The seller paid the freight of P1,000 since the shipping company refuses to load the cargo unless the freight is prepaid. How much is the invoice amount of the purchase?
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 9EB: Blue Barns sold 136 gallons of paint at $31 per gallon on July 6 to a customer with a cost of $19...
Related questions
Question
Honesty purchased an item with a catalog price of P10,000. The invoice dated March 1 indicates a term of 20%, 2/10, n/30. The invoice also indicates that the term of the shipment is FOB shipping point. The seller paid the freight of P1,000 since the shipping company refuses to load the cargo unless the freight is prepaid. How much is the invoice amount of the purchase?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
College Accounting, Chapters 1-27
Accounting
ISBN:
9781337794756
Author:
HEINTZ, James A.
Publisher:
Cengage Learning,
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning