Question
In: Accounting
Determine the amount to be paid by the buyer for full settlement of each invoice, assuming...
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. | $9,800 | $356 | FOB shipping point, 1/10, net 30 | $1,000 |
| $ | ||||
| Merchandise | Transportation Paid by Seller | Transportation Terms | Returns and Allowances | |
| b. | $5,600 | $78 | FOB destination, 2/10, net 45 | $1,200 |
| $ | ||||
Solutions
Expert Solution
a.
In case of FOB shipping point, buyer is liable to pay transportation cost.
Purchases = $9,800
Return and allowances = $1,000
Final amount due = Purchases- Return and allowances
= 9,800-1,000
= $8,800
Discount = Final amount due x 1%
= 8,800 x 1%
= $88
Amount to be paid by the buyer = Final amount due - Discount+ Transportation cost
= 8,800-88+356
= $9,068
b.
In case of FOB Destination, buyer is not liable to pay transportation cost.
Purchases = $5,600
Return and allowances = $1,200
Final amount due = Purchases- Return and allowances
= 5,600-1,200
= $4,400
Discount = Final amount due x 2%
= 4,400 x 1%
= $88
Cash paid by the buyer = Final amount due - Discount
= 4,400-88
= $4,312
| Merchandise | Transportation Paid by Seller | Transportation Terms | Returns and Allowances | |
| a. | $9,800 | $356 | FOB shipping point, 1/10, net 30 | $1,000 |
| $9,068 | ||||
| Merchandise | Transportation Paid by Seller | Transportation Terms | Returns and Allowances | |
| b. | $5,600 | $78 | FOB destination, 2/10, net 45 | $1,200 |
| $4,312 | ||||
ekkarill92 answered 2 years agoRelated Solutions
Determine the amount to be paid by the buyer for full settlement of each invoice, assuming...
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)
$8,900
$220
FOB Shipping Point, 1/10, net 30
$900
(b)
$10,200
$93
FOB Destination, 2/10, net 45
$2,200
a.
$
b.
$
Determine the amount to be paid in full settlement of each of two invoices, (a) and (b)
PE 6-4A 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.MerchandiseFreightPaid by SellerFreight TermsReturns andAllowancesa.$90,000$1,000FOB shipping point, 1/10, n/30$15,000b.110,0001,575FOB destination, 2/10, n/308,500PE 6-4B 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...
Freight Terms Determine the amount to be paid in full settlement of each of two invoices,...
Freight Terms
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.
Merchandise
Freight
Paid by Seller
Freight Terms
Returns and
Allowances
a.
$36,000
$800
FOB destination, 1/10, n/30
$4,000
b.
44,900
375
FOB shipping point, 2/10, n/30
2,400
Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement...
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
Invoice Amount
Freight
Paid by Seller
Customer Returns
and Allowances
a.
$19,400
—
FOB destination, n/30
$1,000
b.
12,400
$500
FOB shipping point, 2/10, n/30
1,500
c.
8,700
—
FOB shipping point, 1/10, n/30
800 ...
Determining Amounts to be Paid on Invoices Determine the amount to be paid in full settlement...
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 Returns and Allowances
a. $21,700 - FOB destination, n/30 $1,100 b. 11,100 $400 FOB
shipping point, 1/10, n/30 1,300 c. 8,300 - FOB shipping point,
2/10, n/30 700 d. 2,600 100...
Determining amounts to be paid on invoices Determine the amount to be paid in full settlement...
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
Invoice Amount
Freight
Paid by Seller
Customer Returns
and Allowances
a.
$33,500
—
FOB destination, n/30
$1,700
b.
12,700
$310
FOB shipping point, 2/10, n/30
2,500
c.
21,800
—
FOB shipping point, 2/10, n/30
4,200 ...
PLEASE ANSWER ASAP!! Freight Terms Determine the amount to be paid in full settlement of each...
PLEASE ANSWER ASAP!!
Freight Terms
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.
Merchandise
(Invoice Amount)
Freight
Paid by Seller
Freight Terms
Returns and
Allowances
(Invoice
Amount)
a.
$24,000
$300
FOB destination, 1/10, n/30
$2,000
b.
31,500
250
FOB shipping point, 2/10, n/30
2,500
a.$
b.$
Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period.
QS 5-4 Computing net invoice amounts LO P1 Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period.
Compute the amount to be paid for each of the four separate invoices assuming that all invoices are paid within the discount period.
Merchandise (gross)
Terms
Payment
a.
$8,800
2/10, n/60
b.
25,700
1/15, EOM
c.
82,600
1/10, n/30
d.
19,500
3/15, n/45
Compute the amount to be paid for each of the four separate
invoices assuming that all invoices are paid within the discount
period.
Required For each of the following events, determine the amount of freight paid by The Box...
Required
For each of the following events, determine the amount of
freight paid by The Box Company. Also indicate whether the freight
cost would be classified as a product or period (selling and
administrative) cost.
Purchased inventory with freight costs of $1,900. The goods were
shipped FOB shipping point.
Sold merchandise to a customer. Freight costs were $2,200. The
goods were shipped FOB shipping point.
Purchased merchandise inventory with freight costs of $2,800.
The merchandise was shipped FOB destination.
Shipped...
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