Question - Determining Amounts to be Paid on Invoices
Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period.
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Merchandise
|
Freight Paid by Seller
|
|
Returns and Allowances
|
|
a.
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$21,000
|
-
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FOB destination, n/30
|
$1,100
|
|
b.
|
12,400
|
$500
|
FOB shipping point, 1/10, n/30
|
1,500
|
|
c.
|
8,700
|
-
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FOB shipping point, 2/10, n/30
|
800
|
|
d.
|
3,800
|
200
|
FOB shipping point, 2/10, n/30
|
500
|
|
e.
|
3,800
|
-
|
FOB destination, 1/10, n/30
|
|
Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Merchandise Sold Unit Cost column.