Question
In: Accounting
A sales invoice included the following information: merchandise price, $66,300; transportation, $2,800; terms 1/10, n/30, FOB...
A sales invoice included the following information: merchandise price, $66,300; transportation, $2,800; terms 1/10, n/30, FOB shipping. Assuming that merchandise that cost $3,600 is returned before it has been paid for, that the transportation is prepaid by the seller, and that the invoice is paid within the discount period, what is the amount of cash that buyer pays the seller?
Solutions
Expert Solution
--Note that the transaction is FOB shipping point, which means that the buyer must pay for the delivery to take the possession. However, the seller has paid the transportation cost and will be reimbursed by the buyer.
--Also note that invoice is paid within discount period, hence a 1% discount of amount payable for purchase will be given to the buyer.
--Amount Paid by the buyer = [($66300 - $3600 returned) x 99%] +
$ 2800 transportation cost.
= 62073 + 2800
= $ 64,873 = Answer
ekkarill92 answered 1 year agoRelated Solutions
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