Question

1. $7,000 of merchandise inventory was ordered on September 2, 2009 2. $3,000 of this merchandise was received on September 5, 2009 3. On September 6, 2009, an invoice dated September 4, 2009, with terms of 3/10, net 30 for $3,250 which included a $250 prepaid freight cost, was received. 4. On September 10, 2009, $800 of the merchandise was returned to the seller. Based on the above information, by what date does the invoice need to be paid in order to take the advantage of the discount?

a. September 15, 2009
b. September 16, 2009
c. September 10, 2009
d. September 14, 2009

Answer 1

Answer:

Correct option is A

Explanation:

Invoiced purchases are $ 3,000, out of which $ 800 worth of goods were returned, and an extra shipping charge of $ 250 needs to be paid.

Total amount of the invoice 3,000

Add: Shipping Charges       250

Less: Value of goods return (800)

Amount to be paid                   $2,450

There will be no discount to be deducted because the invoice was not paid within the 10 days discount period.

$2,450