A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $500, was added to the invoice amount. On June 20, it returned $800 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:
A) $9,224.
B) $10,200.
C) $10,500.
D) $10,300.
E) $9,424.
E) $9,424.
Explanation: Cash Paid = $10,000 - $800 = $9,200 * .97 = $8,924 + $500 = $9,424
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