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Freight terms 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. If required, round the answers to the nearest dollar. a. b. a. b. Merchandise Freight (Invoice Amount) Paid by Seller $200 $ $8,300 4,600 Feedback 6,534 4,116 X 400 Freight Terms FOB destination, 1/10, n/30 FOB shipping point, 2/10, n/30 Returns and Allowances (Invoice Amount) $1,700 950 Check My Work a & b. Under FOB shipping point, freight is paid by the buyer, while under FOB destination freight is the seller's expense. To determine the amount, first deduct the return before calculating the discount. Then calculate (Purchase Return - Discount) + applicable freight.

Determine the amount to be poid in full settlement of eoch of two involces, (a) and (b), assuming that credit for returns and allowances was teceived prior to payment and that as involces were paid within the discount period. If required, round the answers to the nearest doliar. b. x a 8 b. Under FOB shipping point, freight is paid by the buyer, whie under FOB destination freight is the seiler's expense. To determine the amount, first deduct the retum before calculating the discount. Then calculate (Purchase - Retum - Discount) + applicable freight