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Rizlo Co. purchases a machine for $11,400, terms 1/10, n/60, FOB shipping polnt. The seller prepald the $258 frelght charges, adding the amount to the
Rizlo Co. purchases a machine for $11,400, terms 1/10, n/60, FOB shipping polnt. The seller prepald the $258 frelght charges, adding the amount to the Involce and bringing Its total to $11,658. The machine requires speclal steel mounting and power connectlons costing $788. Another $372 Is pald to assemble the machine and get It Into operatlon. In moving the machine to Its steel mounting, $370 In damages occurred. Materlals 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 perlod.) Amount Included in Cost of Equipment: Invoice price of machine Net purchase price Total cost to be recorded
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