Question

Coleman Company purchased goods from Evans with the following terms and details. Sales price, $8,000 Terms, (2/10, n/30) Date of sale, December 8 Date of payment, December 20 Shipping, FOB Destination, $100, prepaid by seller Determine if Coleman, the buyer, qualifies for a cash discount, and who pays for shipping, Coleman or Evans.

Answer 1

Answer:

No sale discount,

Shipping cost will be paid by buyer (Coleman Company)

Explanation:

2/10 means if payment is done within 10 days then 2% discount, n/30 means to pay full amount within 30 days. As payment was made after 12 days, so no discount. FOb means free on board shipping point, which means after product left port of supplier country then buyer will be responsible for goods and its shipping cost.