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:

Partnership Property

Partnership property refers to all the assets and property owned by a partnership, which are utilized for the partnership's business activities and are distinct from the personal property of the individual partners.

Verbal Agreement

An agreement made through spoken words and not formally documented, which can be legally binding under certain conditions.

Rightfully Dissolved

A term applied to the dissolution of a partnership in a way that does not violate the partnership agreement.

Partnership Agreement

A contract among partners in a business that outlines the terms and conditions of the relationship, including the distribution of profits and losses.