Business accounting (Merchandising)

Question

A sales invoice included the following information: merchandise price, RM12,000; transportation, RM500; terms 2/10, n/eom, FOB shipping point. Assuming that a credit for merchandise returned of RM600 is granted prior to payment, that the transportation is prepaid by the seller, and that the invoice is paid within the discount period, what is the amount of cash received by the seller? 

 

A. RM11,662 

B. RM11,672 

C. RM12,250 

D. RM11,172 

 

Answer 1

Merchandise Price $12,000

Freught 500

Returned Merchandise -600

Subtotal 11,900

2% Discount -238

Amount Paid to Seller $11,662

Answer $11,662

PLease review and let me know if this is the correct answer.