A Company Purchased $10,000 of Merchandise on June 15 with Terms

Multiple Choice

A company purchased $10,000 of merchandise on June 15 with terms of 3/10, n/45, and FOB shipping point. The freight charge was $500. 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.