Chocolate Supreme purchased new baking equipment for $15,000 subject to terms 4/10,n/45.The discount was taken.Additional costs included sales tax $900 and installation $300.The total cost to be added to the machinery account is:

Question

Quizplus · Accepted Answer

The cost of the new baking equipment is $15,000. Since the discount of 4% was taken, the amount paid is 96% of $15,000:
$15,000 x 0.96 = $14,400

The additional costs of sales tax and installation are $900 + $300 = $1,200.

Therefore, the total cost to be added to the machinery account is:
$14,400 + $1,200 = $15,600.

So, the correct answer is D.

Chocolate Supreme Purchased New Baking Equipment for $15,000 Subject to Terms