Question

Determine the amount to be paid by the buyer for 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	Transportation Paid by Seller	Transportation Terms	Returns and Allowances
(a)	$13,100	$301	FOB Shipping Point, 1/10, net 30	$1,300
(b)	$13,200	$69	FOB Destination, 2/10, net 45	$2,900

a.	$fill in the blank 1
b.	$fill in the blank 2

Answer 1

Answer:
Particulars	Amount (in $ )
Purchases	$ 13,100
less: Returns	($ 1,300)
Less: Discount               ( $ 13,100 (-) $ 1,300 ) x 1%	($ 118)
Add:Transportation or Freight Paid by Seller	$ 301
(a)	$ 11,983
Particulars	Amount (in $ )
Purchases	$ 13,200
less: Returns	($ 2,900)
Less: Discount               ( $ 13,200 (-) $ 2,900 ) x 2%	($ 206)
(b)	$ 10,094