A firm purchased machinery on account with an invoice price of $ 15,000. The terms of payment were 2/10, net 30. In addition, transportation of $250, installation of $420, and sales tax of $ 1,000 were paid in cash. While installing the machinery, an employee’s negligence caused $150 worth of damage to the machine, which was repaired and the repair bill paid in cash.

Required

a. Calculate the total cost of the machinery.

b. How should managers view the damage to the equipment?

Answer rating: 100% (QA)

a Total Cost of machine Purchase price 15000 Add Sales tax 1... View the full answer