Details of a Purchase Invoice, Credit Terms, and a Purchase

Short Answer

Details of a purchase invoice, credit terms, and a purchase return are shown below. Assume the credit memo was received and payment made within the discount period. $\begin{array} { l r } \text { Cost of merchandise as shown on purchase invoice } & \$ 9,200 \\\text { Cost of merchandise returned } & 3,700 \\\text { Transportation charges, terms FOB shipping point } & 500 \\\text { Credit terms } & 2 / 10 \mathrm { n } / 30\end{array}$ Compute the following:
a)amount of discount
b)amount paid by purchaser, within the discount period, including freight, if applicable
c)amount paid by purchaser if paid after expiration of discount including freight, if applicable