Question

Harvard Company purchased equipment having an invoice price of $11,500. The terms of sale were 2/10, n/30, and Harvard paid within the discount period. In addition, Harvard paid a $160 delivery charge, $185 installation charge, and $931 sales tax.
Required:
a. The amount recorded as the cost of this equipment is ____________.

Answer 1

Answer:

$12,546

Explanation:

Invoice price $11,500 × 0.98 =$11,270

Add: Delivery charge $160

Installation charge $185

Sales tax $931

Cost of equipment $12,546

Therefore the amount recorded as the cost of this equipment is is $12,546