Rizio Company purchases a machine for $9,900, terms 2/10, n/60, FOB shipping point. Rizio paid within...

 

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Rizio Company purchases a machine for $9,900, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $198 discount. Transportation costs of $224 were paid by Rizio. The machine required mounting and power connections costing $684. Another $323 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $300 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 0 Total cost to be recorded S 0 Rizio Company purchases a machine for $9,900, terms 2/10, n/60, FOB shipping point. Rizio paid within the discount period and took the $198 discount. Transportation costs of $224 were paid by Rizio. The machine required mounting and power connections costing $684. Another $323 is paid to assemble the machine, and $40 of materials are used to get it into operation. During installation, the machine was damaged and $300 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 0 Total cost to be recorded S 0

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Amount Included in Cost of Equipment Invoice price of machine 9900 Net purcha... View the full answer