Question

Whispering Winds Corp. purchased a delivery van with a $52000 list price. The company was given a $4200 cash discount by the dealer and paid $2700 sales tax. Annual insurance on the van is $1400. As a result of the purchase, by how much will Whispering Winds Corp. increase its van account?

Answer 1

Answer:

$50,500

Explanation:

Calculation for by how much will Whispering Winds Corp. increase its van account

Using this formula

Increase in Van account =List price- Cash discount + Sales tax paid

Let plug in the formula

Increase in Van account=$52,000-$4,200+2,700

Increase in Van account=$50,500

Therefore by how much will Whispering Winds Corp. increase its van account will be $50,500