Farha Co. purchases a machine for $11,500, terms 2/10, n/30, FOB shipping point. the seller prepaid the $260 freight charges, adding the amount to the invoice and bringing its total $11, 760. The machine requires special steel mounting and power connections costing $795. Another $375 is paid assemble the machine and get it into operation. In moving the machine to steel mounting, $190 in damages occurred. Materials costing $30 are used in adjusting the machine to produce a satisfactory product. The adjustments are normal for this machine and are not the results of the damages compute the cost recorded for this machine( farha pays for the machine within the discount period.)
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