A company purchased $10,400 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $700, was added to the invoice amount. On June 20, it returned $1,120 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 company purchased $10,400 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge, $700, was added to the invoice amount. On June 20, it returned $1,120 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:

The cash paid on June 24 equals: $9,780

Explanation:

When the company purchased merchandise, the following entries are recorded.

Merchandise $10,400 (debit)

Freight Charges $700 (debit)

Accounts Payable $11,100 (credit)

When the company returned merchandise, the following entries are recorded.

Accounts Payable $1,120 (debit)

Merchandise $1,120 (credit)

When the company pay for the merchandise, the payment is made within the discount period and is eligible for a cash discount of 3%.

Accounts Payable $9,980 (debit)

Discount Received $200 (credit)

Cash $9,780 (credit)

Conclusion :

The cash paid on June 24 equals: $9,780

rational decision making is a multi-step process for making choices between alternatives. the process of rational decision making favors logic, objectivity, and analysis over subjectivity and insight. the word “rational” in this context does not mean sane or clear-headed as it does in the colloquial sense.

hope this