A sales invoice included the following information: merchandise price, $12,000; terms 1/10, n/eom, FOB shipping point with prepaid freight of $900 added to the invoice. Assuming that a credit for merchandise returned of $500 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller?

a. $12,285

b. $11,385

c. $11,500

d. $10,480

Answer rating: 100% (QA)

Computation of discount on sales is given below Discount Net Sales Rate of discount 11500 1 115 Work... View the full answer