Ben's Supreme purchased new baking equipment for $19,000 subject to terms 3/15, n/45. The discount was taken. Additional costs included sales tax $500 and installation $400. The total cost to be added to the equipment account is:

Question

Quizplus · Accepted Answer

The discount is taken, so the cost is reduced by 3%. The sales tax and installation costs are added to the cost. Therefore, the total cost is $19,000 - $19,000 x 3% + $500 + $400 = $19,330.

Ben's Supreme Purchased New Baking Equipment for $19,000 Subject to Terms