A company purchased $10,500 of merchandise on June 15 with terms of 2/10, n/45, and FOB shipping point. The freight charge, $750, was added to the invoice amount. On June 20, it returned $1,200 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:

,

$9,825

Explanation:

Merchandise Costs must include all costs related to acquisition of merchandise such as freight charges for valuation purposes - IAS 2.

Therefore Cost of Merchandise Purchased was, $10,500 + $750  = $11,250

Merchandise Purchase - June 15 :

Debit : Merchandise $11,250

Credit ; Discount Received (2% x $11,250) $225

Credit : Account Payable (98 % x $11,250)  $11,025

Return of Merchandise - June 20 :

Debit : Accounts Payable $1,200

Credit : Merchandise $1,200

Amount to be Paid - June 24 :

Debit : Accounts Payable ($11,025 - $1,200)  $9,825

Credit : Cash $9,825

one of the disadvantages of getting a government sponsored mortgage is they put a limit on the purchase price of the house. because the government is in charge of the mortage loan and terms, they are able to control how much money they are allowing someone to take out for the loan. not only are they incontrol, it's a lengthy process for a government sponsored mortgage.

answer; drop shippers;