Jimmie Jones Purchases Merchandise from GPS Industries for $15,500 on Account

Multiple Choice

Jimmie Jones purchases merchandise from GPS Industries for $15,500 on account. The terms were FOB Destination with freight costs of $100. Upon inspection of the merchandise received, Jimmie Jones discovers damaged goods in the amount of $2,500 and requests to return the damaged merchandise to GPS Industries. Once the return is processed, what is the new balance owed by Jimmie Jones?

A) $13,000
B) $13,100
C) $15,500
D) $15,600