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What amount will be paid in full settlement of Invoice 22384, assuming that credit for returns and allowances was received prior to payment and that the invoice was paid within the discount period. Inv. No. Merchandise Freight Paid by Seller Freight Terms Returns and Allowances 22384 $4,500 $140 FOB Shipping Point, 2/10, net 30 $1,200

Answer :

Answer: $3374

Explanation:

Merchandise = $4500

Less: Return and allowance = $1200

Less: Discount rate at 2% = $66

Add: Freight paid by seller = $140

The amount that will be paid in full settlement of Invoice will be:

= $4500 - $1200 - $66 + $140

= $3374

Note:

Discount rate was calculated as:

= 2% × ($4500 - $1200)

= 2% × $3300

= 0.02 × $3300

= $66

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