How much is cost of the merchandise inventory to be recorded

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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?

Reference no: EM132776793

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