Merchandise Subject to Terms 1/10, N/30, FOB Shipping Point, Is

question 12

Multiple Choice

Merchandise subject to terms 1/10, n/30, FOB shipping point, is sold on account to a customer for $25,000. The seller paid freight costs of $2,000 and issued a credit memo for $10,000 prior to payment. What is the amount of the cash discount allowable?

• A) $170
• B) $150
• C) $130
• D) $250