Question

Bosworth Company purchased $12,000 worth of merchandise, FOB shipping point. Transportation costs were an additional $1,050. The company later returned $2,250 worth of merchandise and paid the invoice within the 2% cash discount period. The total amount paid for this merchandise is:

Answer 1

Answer:

$10,605

Explanation:

Calculation for the total amount paid for this merchandise

Purchase price $12,000

Add: Transportation cost 1,050

Less: Returns (2,250)

Less: Cash discount (195)

[($12,000-2,250)*2%]

Total amount paid $10,605

Therefore the total amount paid for this merchandise is $10,605