Shore Co. sold merchandise to Blue Star Co. on account, $111,200, terms FOB shipping point, n/30. Thecost
Question:
Shore Co. sold merchandise to Blue Star Co. on account, $111,200, terms FOB shipping point, n/30. Thecost of the goods soldis $66,720. Shore paid freight of $1,900. Shore Co. issued a credit memo for $8,100 to Blue Star Co. for merchandise that was returned. The cost of the merchandise returned was $3,900.
Determine the amount to be paid in full settlement of each of twoinvoices, (a) and (b), assuming that credit forreturns and allowanceswas received prior to payment and that all invoices were paid within the discount period. If required, round the answers to the nearest dollar.
Invoice | Merchandise (Invoice Amount) | Freight Paid by Seller | Freight Terms | Returns and Allowances (Invoice Amount) |
a. | $6,400 | $100 | FOB destination, 1/10, n/30 | $1,700 |
b. | 3,100 | 300 | FOB shipping point, 2/10, n/30 | 850 |
Invoice | Amount |
a. | |
b. |
Corporate Financial Accounting
ISBN: 978-1133952411
12th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan E. Duchac