Details of a purchase invoice, credit terms, and a purchase return are shown below. Assume the credit memo was received and payment made within the discount period. $\begin{array} { l r }
\text { Cost of merchandise as shown on purchase invoice } & \$ 9,200 \
\text { Cost of merchandise returned } & 3,700 \
\text { Transportation charges, terms FOB shipping point } & 500 \
\text { Credit terms } & 2 / 10 \mathrm { n } / 30
\end{array}$ Compute the following:
a)amount of discount
b)amount paid by purchaser, within the discount period, including freight, if applicable
c)amount paid by purchaser if paid after expiration of discount including freight, if applicable

Question

Details of a purchase invoice, credit terms, and a purchase return are shown below. Assume the credit memo was received and payment made within the discount period. $\begin{array} { l r } 
\text { Cost of merchandise as shown on purchase invoice } & \$ 9,200 \
\text { Cost of merchandise returned } & 3,700 \
\text { Transportation charges, terms FOB shipping point } & 500 \
\text { Credit terms } & 2 / 10 \mathrm { n } / 30
\end{array}$ Compute the following:
a)amount of discount
b)amount paid by purchaser, within the discount period, including freight, if applicable
c)amount paid by purchaser if paid after expiration of discount including freight, if applicable

Quizplus · Accepted Answer

The Answer of Details of a purchase invoice, credit terms, and a purchase return are shown below. Assume the credit memo was received and payment made within the discount period. $\begin{array} { l r } 
\text { Cost of merchandise as shown on purchase invoice } & \$ 9,200 \
\text { Cost of merchandise returned } & 3,700 \
\text { Transportation charges, terms FOB shipping point } & 500 \
\text { Credit terms } & 2 / 10 \mathrm { n } / 30
\end{array}$ Compute the following:
a)amount of discount
b)amount paid by purchaser, within the discount period, including freight, if applicable
c)amount paid by purchaser if paid after expiration of discount including freight, if applicable

Details of a Purchase Invoice, Credit Terms, and a Purchase