Rizio Company purchases a machine for $12,400, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $124 discount. Transportation costs of $280 were paid by Rizio. The machine required mounting and power connections costing $857. Another $404 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $215 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 Company purchases a machine for $12,400, terms 1/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $124 discount. Transportation costs of $280 were paid by Rizio. The machine required mounting and power connections costing $857. Another $404 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $215 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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