Rizio Co. purchases a machine for $12,500, terms 2/10, n/60, FOB shipping point. The seller prepaid the
Question:
Rizio Co. purchases a machine for $12,500, terms 2/10, n/60, FOB shipping point. The seller prepaid the $U)0 freight charges, adding the amount to the invoice and bringing its total lo $12,860. The machine re(|nires special sleel monniing and power conneclions costing $895. Another $475 is paid to assemble the machine and gel il into operation. In moving Ihe machine to its steel mounting, $180 in damages occurred. Materials costing $40 are used in adjusling the machine lo iirodncc a satisfactory product. The adjustments aie noiinal lor Ihis machine and are not Ihe resnil of Ihe damages. Compute the cost recorded for this machine, iRizio pays lor Ihis machine within Ihe cash ilisconni period.)
Step by Step Answer:
Fundamental Accounting Principles Volume 2
ISBN: 9780077716660
21st Edition
Authors: John Wild, Ken Shaw, Barbara Chiappetta