Details of Purchase Invoices Including Shipping Terms, Credit Terms, and Returns

question 170

Short Answer

Details of purchase invoices including shipping terms, credit terms, and returns appear below. Compute the total amount to be paid in full settlement of each invoice, assuming that credit for returns is granted before the expiration of the discount period and payment is made within the discount period. $\begin{array} { | l | l | c | c | } \hline \text { Invoice } & \text { Freight and Credit Terms } & \begin{array} { c } \text { Transportation } \\\text { Charges }\end{array} & \begin{array} { c } \text { Returns and } \\\text { Allowances }\end{array} \\\hline \text { a) } \$ 2,000 & \text { FOB destination, } 3 / 10 \mathrm { n } / 45 & \$ 55 & \$ 200 \\\hline & \text { FOB shipping point, } 2 / 10 & & \\\text { b) } \$ 5,500 & \mathrm { n } / 30 & \$ 100 & \$ 50 \\\hline & \text { FOB shipping point, } 2 / 10 & & \\\text { c) } \$ 6,700 & \mathrm { n } / 45 & \$ 200 & \$ 350 \\\hline \text { d) } \$ 9,300 & \text { FOB destination, } 2 / 10 \mathrm { n } / 60 & \$ 150 & \$ 550 \\\hline\end{array}$

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Definitions:

Independent Regulatory Agencies

Independent regulatory agencies are federal bodies created by Congress to enforce and regulate specific areas of economic activity, operating with some degree of independence from executive control.

Federal Communications Commission

A United States government agency that regulates interstate and international communications via radio, television, wire, satellite, and cable.

Executive Branch

The branch of government responsible for implementing and enforcing laws, usually led by a president or prime minister.

Administrative Law Judge

An official who presides over government agency hearings, making decisions on disputes, regulations, or rights.