The Higgins Company sold the Northwest Company some machinery parts. The net price was $10,000, and the terms were 3 / 10 , n / 60. The items were shipped FOB shipping point and the shipping charges were $100. The date of the invoice was July 10. If the invoice is to be paid on July 19 , find the net amount due.

(a) $ 9,900.00 (b) $ 9,600.00 (c) $ 9,800.00 (d) $ 9,700.00 (e) $ 10,000.00

I cant figure out the concept in order to figure out the solution can someone please help me out just to give me the concept or the formula to figure out the answer

To calculate the net amount due, you need to understand the given terms and calculate the appropriate discounts. Here's the concept and formula you can use to find the answer:

1. Breakdown of the terms:
- "3/10" means that the buyer (Northwest Company) is eligible for a 3% cash discount if the invoice is paid within 10 days.
- "n/60" implies that the net amount is due within 60 days.

2. Calculation steps:
a) Find the cash discount:
- Multiply the net price by the cash discount percentage: $10,000 x 0.03 = $300.

b) Calculate the net amount:
- Subtract the cash discount from the net price: $10,000 - $300 = $9,700.

c) Consider the shipping charge:
- Since the invoice is "FOB shipping point," the buyer (Northwest Company) is responsible for paying the shipping charges of $100.
- Add the shipping charge to the net amount: $9,700 + $100 = $9,800.

Therefore, the net amount due is $9,800. The correct answer is option (c).