outhwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $121,930. The seller agreed to allow a 5.25 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,320. Southwest Milling had to hire a specialist to calibrate the loader. The specialist’s fee was $1,220. The loader operator is paid an annual salary of $32,000. The cost of the company’s theft insurance policy increased

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Southwest Milling Co. purchased a front-end loader to move stacks of lumber. The loader had a list price of $121,930. The seller agreed to allow a 5.25 percent discount because Southwest Milling paid cash. Delivery terms were FOB shipping point. Freight cost amounted to $2,320. Southwest Milling had to hire a specialist to calibrate the loader. The specialist’s fee was $1,220. The loader operator is paid an annual salary of $32,000. The cost of the company’s theft insurance policy increased 

 

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