Reference no: EM132776793
Applying this concept, you are given the following data pertinent to the acquisition expenditures incurred in the acquisition of certain assets of asset of BSA Corporation:
Merchandise Inventory, Terms: 10% trade discount, 2/10, n/30FOB shipping point P 100,000
Freight in 8,000
Insurance in transit 2,000
Machinery:
Terms, n/60, FOB destination, Invoice price P 2,000,000
Transportation costs 15,000
Insurance in transit 3,000
Installation costs 20,000
Cost of trial runs 10,000
Problem 1: How much is the cost of the merchandise inventory to be recorded in the books of account?
Problem 2: How much is the cost of the machinery to be recorded in the books of account?
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