A sales invoice included the following information: merchandise price, $12,000; terms 1/10, n/eom, FOB shipping point with prepaid freight of $900 added to the invoice. Assuming that a credit for merchandise returned of $500 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller?

Term 1/10, means if the buyer pays the seller within 10 days, the buyer will receive 1% sales discount. However, n/eom means the payment must be paid within a certain number of days of the month according to the agreement.

Accounting explanation:

Here, Merchandise price = $12,000

Sales return = $500

Total Sales = $11,500

Since the invoice is paid within the discount period, and the discount is 1%

Sales Discount = $11,500 x 0.01 = $115

Net Sales = $(11,500 - 115) = $11,385

FOB shipping point means buyer has to pay the freight cost. Therefore,

Total amount of cash to be paid by the customer (or, to be received by the seller) = $11,385 + $900 = $12,285

swatiupadhyay714 swatiupadhyay714 · Answer 2 · 2021-10-22T14:30:57+02:00

Sales invoice means the receipt or the written document which describes the customers about the transactions or the items purchased by the seller. The amount of cash received by the seller is $12,285.

Term 1/10, is a term used if the buyer pays the seller within 10 days, the buyer will receive a 1% sales discount. However, n/eom refers to the process when the payment must be paid within a certain number of days of the month according to the agreement.

Given is the following details:

Merchandise price = $12,000

Sales return = $500

[tex]\begin{aligned}\text{Total Sales} &= \text{Merchandise price}-\text {sales return} \\& = {$12000-$500}\\ &= {$11,500}\end{aligned}[/tex]

Since the invoice is paid within the discount period, and the discount is 1%

[tex]\begin{aligned}\text{Sales Discount} &= \text{Total sales} \times \text{discount period}\\&= \$11,500 \times 0.01 \\& = \$115\end{aligned}[/tex]

[tex]\begin{aligned}\text{Net Sales} & = \text{Total sales} -\text{sales discount} \\& =\$11,500 - 115 \\ &= \$11,385\end{aligned}[/tex]

FOB shipping point means the buyer has to pay the freight cost. Therefore, The total amount of cash to be paid by the customer (or, to be received by the seller):

[tex]\begin{aligned}\text{Total amount received} &= \text{Net sales}+\text{prepaid freight} \\ & =\$11,385 + \$900 \\ & = \$12,285\end{aligned}[/tex]

To know more about the sales invoice and the amounts received or paid by the customers and sellers respectively, refer to the link below:

https://brainly.com/question/15112453?referrer=searchResults