RB Purchased a Machine on January 1, 2014

question 9

Multiple Choice

RB purchased a machine on January 1, 2014. The invoice price was $1,000, terms 1/10, n/31. Provincial sales tax on the invoice price was 4 percent. Other related cash payments by RB were: shipping, $75, and installation, $100. The invoice was paid on January 23, 2014. The machine account should be debited for:

• A) $1,105.
• B) $1,130.
• C) $1,205.
• D) $1,215.

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Definitions:

Payable at a Definite Time

Refers to a financial obligation that is due to be paid on a specific date.

Fixed Date

A specific, agreed-upon date by which an event must occur or an action must be taken.

Time Readily Ascertainable

A term referring to a time period that can be easily and quickly determined or identified without significant delay or investigation.

Negotiable

Referring to a legal document or instrument that is transferable from one party to another in good faith and for value, with the holder then having the right to execute it.