Leonette decided that Meaghan was smart to get her business started by buying on the installment plan. That way she would have an operating expense and keep her ready cash as operating capital. Leonette decided to buy computer equipment for her accounting practice. The total cost of the equipment which will also include furniture is $12,000. Leonette plans to pay $2,000 down and make 5 payments of $ 2,000 plus interest at 10% per annual payment. 

At what amount should Leonette record her purchase?

Answer rating: 100% (QA)

The total cost of the computer equipment and furniture is 12000 and Leonette plans to pay for it on ... View the full answer