Question: Kruz co purchases a machine for 10400 terms 110 n60
Kruz Co. purchases a machine for $10,400, terms 1/10, n/60, and FOB shipping point. The seller prepaid the $235 freight charges, adding the amount to the invoice and bringing its total to $10,635. The machine requires special steel mounting and power connections costing $719. Another $339 is paid to assemble the machine and get it into operation. In moving the machine to its steel mounting, $250 in damages occurred. Materials costing $40 are used in adjusting the machine to produce a satisfactory product. The adjustments are normal for this machine and are not the result of the damages. Compute the cost recorded for this machine. (Kruz pays for this machine within the cash discount period.)
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