1, Pane purchases a machine to make stained glass windows. The contract has terms of 2/10, n/30. Pane pays for the machine on March 9. The machine has no residual value. Pane follows the net method for cash discounts. Contract Price: $105,500 Transportation Costs: $7,200 Installation Costs: $4,956 Sales Tax: 10% Useful Life of Machine (years) 6

two entries one for purchase of equipment on account

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second entry for payment of the equipment

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