Asked by Joshua Palesano on Apr 25, 2024
Merchandise subject to terms 2/10, n/30, FOB shipping point, is sold on account to a customer for $25,000. What is the amount of sales discount allowable?
A) $260
B) $500
C) $460
D) $150
FOB Shipping Point
A term of sale indicating that the buyer assumes responsibility for shipping costs and risk of loss once the seller has delivered the goods to the shipping carrier.
Sales Discount
A reduction in the price of a product or service offered to customers, typically to prompt early payment or bulk purchases.
- Calculate sales discounts and understand their financial impact.
Learning Objectives
- Calculate sales discounts and understand their financial impact.
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