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.

Answer rating: 100% (QA)

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