Question: 10 Rizio Co. purchases a machine for $13,600, terms 2/10, n/60, FOB shipping point. The seller prepaid the $307 freight charges, adding the amount to
10 Rizio Co. purchases a machine for $13,600, terms 2/10, n/60, FOB shipping point. The seller prepaid the $307 freight charges, adding the amount to the invoice and bringing its total to $13.907. The machine requires special steel mounting and power connections costing $940. Another $443 is paid to assemble the machine and get it into operation. In moving the machine to its steel mounting $260 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 Skipped Be Complete the below table to calculate the cost recorded for this machine. (Rizio pays for this machine within the cash discount period.) Pent Amount Included in Cost of Equipment: References Invoice price of machine Net purchase price Total cost to be recorded
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
