A Sales Invoice Included the Following Information: Merchandise Price, $12,000;

question 173

Multiple Choice

A sales invoice included the following information: merchandise price, $12,000; terms 1/10, n/eom; FOB shipping point with prepaid freight of $900 added to the invoice. Assuming that a credit for merchandise returned of $500 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller?

• A) $12,285
• B) $11,500
• C) $10,480
• D) $11,385

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Definitions:

Proprietorship

A business model where a single individual owns the company and is responsible for its assets and liabilities, also known as a sole proprietorship.

Single Individual

Refers to one person acting in a capacity, either personally or legally, without partnership or company.

Business

An organization involved in the trade of goods, services, or both to consumers.

Capital Deficits

Refers to a situation where a company's liabilities exceed its assets, indicating financial weakness or distress.