1. $7,000 of merchandise inventory was ordered on September 2, 20092. $3,000 of this merchandise was received on September 5, 20093. 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, what would be recorded as the cash payment if the invoice is paid within the discount period

The cash payment to be recorded is:

= $2,376.50.

Explanation:

a) Data and Calculations:

September 2, 2009: Merchandise order = $7,000

September 5, 2009: Merchandise received = $3,000

September 6, 2009: Freight-in                              250

Terms of trade 3/10, net 30

September 10, 2009: Return of merchandise     (800)

Total value of merchandise =                           $2,450

Cash discount (3% of $2,450) =                               73.50

Cash payment =                                                $2,376.50

b) The trade terms of 3/10, net 30 means that a discount of 3% is allowed when payment is made within 10 days of the purchase date or on or before September 11, 2009.  This amounts to $73.50.  Therefore, the net amount to be paid is $2,376.50 after deducting the calculated discount amount.

previous business sales - c.

eds? ederal government or feds