An Invoice Amount for $4,090

question 33

Short Answer

An invoice amount for $4,090.72 has the terms 2/15, n/30. There are $135 in freight charges included in the invoice. $346.24 in merchandise is returned and the invoice is paid within the discount period. What is the net amount due?

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Definitions:

Gross Profit

The financial gain obtained after subtracting the cost of goods sold from total revenue, indicating the efficiency of a company in managing its production and labor costs.

Net Sales

The amount of sales revenue remaining after deducting returns, allowances, and discounts from total sales.

Cost Of Goods Sold

Cost of goods sold (COGS) is the direct cost attributable to the production of the goods sold by a company, including the cost of materials and labor.

Gross Profit

The financial gain a company achieves after subtracting the cost of goods sold from its total revenue.