Question

Martinez Corp. purchased a delivery van with a $57000 list price. The company was given a $5400 cash discount by the dealer, and paid $2600 sales tax. Annual insurance on the van is $1200. As a result of the purchase, by how much will Martinez Corp. increase its van account?

Answer 1

Answer:

VAN = 51,600

Explanation:

57,000

-5,400 discounts

51,600

Notes

• The sales tax is part of the list price, it must be accounted for the seller part. not the buyer.
• The insurance will be a prepaid insurance, not part of the van