Question
Rizio Co. purchases a machine for $10,600, terms 1/10, n/60, FOB shipping point. The seller prepaid the $240 freight charges, adding the amount to the
Rizio Co. purchases a machine for $10,600, terms 1/10, n/60, FOB shipping point. The seller prepaid the $240 freight charges, adding the amount to the invoice and bringing its total to $10,840. The machine requires special steel mounting and power connections costing $733. Another $346 is paid to assemble the machine and get it into operation. In moving the machine to its steel mounting, $205 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. |
Complete the below table to calculate the cost recorded for this machine. (Rizio pays for this machine within the cash discount period.) (Negative amounts should be indicated by a minus sign.) |
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