A sales invoice included the following information: merchandise price, 12,000; terms 1/10, n/eom, FOB shipping point with prepaid freight of 900 added to the invoice. Assuming that a credit for merchandise returned of 500 is granted prior to payment and that the invoice is paid within the discount period, what is the amount of cash that should be received by the seller?
a. 12,285
b. 11,500
c. 10,480
d. 11,385
Question 2
On July 1, Team Shirts paid 600 for three months' worth of advertising beginning on July 1. What is the balance in the Prepaid advertising account at August 31?
A) 0
B) 200
C) 400
D) 600
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