RECORDING AN ACQUISITION. Colson Developing Service purchased a new enlarger on April 15. The list price of the enlarger was $13,400. The seller offered Colson terms of 3/10, n/30. Colson recorded the purchase net of discount and paid the list price in early May. During installation Colson incurred and paid in cash the following costs:

REQUIRED:
1. What should be done with the $402 discount that was not taken? Prepare the jour- nal entry to record payment of the $13,400. 2. At what amount should the enlarger be recorded in Colson’s ledger? 3. Why did you include or exclude the $160 bracket replacement cost?

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Rental of drill Electrical contractor Plumbing contractor $150 400 190 Colson also paid $160 to replace a bracket on the enlarger that was damaged when one of Colson's employees dropped a box on it.