Determine the amount to be paid in full settlement of each of two invoices, (a) and (b),

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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 ................................................. Returns and
.......................Paid by Seller ......... Freight Terms ................... Allowances
a. ..... $ 90,000 ......... $1,000 ......... FOB shipping point, 1/10, n/30 ..... $15,000
b. ..... 110,000 ............1,575 ......... FOB destination, 2/10, n/30 ........... 8,500
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Financial Accounting

ISBN: 978-1305088436

14th edition

Authors: Carl S. Warren, Jim Reeve, Jonathan Duchac

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