On August 2, 2013, Darmow Corporation purchased a new machine on a deferred payment basis. It made a down payment of $1,000 and will make 4 monthly installments of $2,500 each beginning on September 1, 2013. The cash equivalent price of the machine was $9,500. Darmow incurred and paid installation costs amounting to $300.

Required:

Prepare the journal entry to record the acquisition of the machine.