Bosworth Company purchased $12,000 worth of merchandise, FOB shipping point. Transportation costs were an additional $1,050. The company later returned $2,250 worth of merchandise and paid the invoice within the 2% cash discount period. The total amount paid for this merchandise is:

$10,605

Explanation:

Calculation for the total amount paid for this merchandise

Purchase price$12,000

Add: Transportation cost1,050

Less: Returns(2,250)

Less: Cash discount (195)

[($12,000-2,250)*2%]

Total amount paid$10,605

Therefore the total amount paid for this merchandise is $10,605

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