Question

In: Accounting

A sales invoice included the following information: merchandiseprice, $49,800; transportation, $1,900; terms 2/10, n/30, FOB...

A sales invoice included the following information: merchandise price, $49,800; transportation, $1,900; terms 2/10, n/30, FOB destination. Assuming that merchandise that cost $3,100 is returned before it has been paid for, that the transportation is paid 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

Final amount due = Cost of goods purchased - Cost of goods returned

= 49,800 - 3,100

= $46,700

Discount amount = Final amount due x Discount percentage

= 46,700 x 2/100

= $934

Cash payment to be made = Final amount due - Discount amount

= 46,700 - 934

= $45,766

ekkarill92 answered 2 years ago
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