Determine the Amount to Be Paid in Full Settlement of Each

question 7

Short Answer

Determine the amount to be paid in full settlement of each invoice, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid within the discount period. $$\begin{array} { | l | r | r | c | r | } \hline & \textbf { Merchandise } & \begin{array} { c } \textbf { Freight Paid by } \\\textbf { Seller }\end{array} & \textbf { Freight Terms } & \begin{array} { c } \textbf { Returns and } \\\textbf { Allowances }\end{array} \\\hline \text { (a) } & \$ 4,500 & \$ 140 & \begin{array} { l } \text { FOB shipping point, } \\2 / 10 , \text { net } 30\end{array} & \$ 1,200 \\\hline \text { (b) } & 7,650 & \$ 200 & \begin{array} { l } \text { FOB destination, } \\1 / 10 , \text { net } 45\end{array} & 450 \\\hline\end{array}$$

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Definitions:

Hospital Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured in a hospital setting, often part of broader health insurance plans.

OASDI

The Old-Age, Survivors, and Disability Insurance program, which is the official name for Social Security in the United States, providing benefits for eligible retirees, disabled individuals, and their families.

Hospital Insurance

Coverage that pays for hospitalization expenses either partially or in full, typically part of health insurance.

Time and a Half

A pay rate that is 1.5 times the employee's regular hourly rate, typically awarded for overtime work.