PE 6-4A Freight terms
Determine the amount to be paid in full settlement of each of 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.
| Merchandise | Freight Paid by Seller | Freight Terms | Returns and Allowances | |
| a. | $120,000 | $5,000 | FOB shipping point, 1/10, n/30 | $15,000 |
| b. | 90,000 | 1,000 | FOB destination, 2/10, n/30 | 2,000 |
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