Question

A company purchased $11,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $1,000, was added to the invoice amount. On June 20, it returned $1,600 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:

Answer 1

Answer:

$10,215

Explanation:

                                                                   Amount

Purchase                                                     11,100

Less; purchase return                                -1,600

Net purchase                                               9,500

Less: Purchase discount (9500*3%)           -285

                                                                    9,215

Freight in                                                     1,000

Cash Amount paid                                    $10,215