Rizio Co. purchases a machine for $13.100, terms 210, n/60, FOB shipping point. Rizio paid within the discount period and took the $262 discount. Transportation costs of $296 were paid by Rizio. The machine required mounting and power connections costing $906. Another $427 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $265 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded
Rizio Co. purchases a machine for $13.100, terms 210, n/60, FOB shipping point. Rizio paid within the discount period and took the $262 discount. Transportation costs of $296 were paid by Rizio. The machine required mounting and power connections costing $906. Another $427 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $265 worth of repairs were made. Complete the below table to calculate the cost recorded for this machine. Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rizio Co. purchases a machine for $13,100, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $262 discount. Transportation costs of $296 were paid by Rizio. The machine required mounting and power connections costing $906. Another $427 is paid to assemble the machine and $40 of materials are used to get it into operation. During installation, the machine was damaged and $265 worth of repairs were made.
Complete the below table to calculate the cost recorded for this machine.
Transcribed Image Text:Rizio Co. purcheses a machine for $13,100, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $262
discount. Transportation costs of $296 were paid by Rizio. The machine required mounting and power connections costing $906. Another
$427 is paid to ossemble the machine and $40 of materials are used to get it into operstion. During installation, the mechine wes damaged and
$265 worth of repairs were made.
Complete the below table to calculate the cost recorded for this mochine.
Amount Included in Cost of
Equipment:
Invoice price of machine
Net purchase price
Total cost to be recorded
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