Katen Company purchases a machine with a purchase price of $200,000 on terms of 2/10,...
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Accounting
Katen Company purchases a machine with a purchase price of $200,000 on terms of 2/10, n/30. Katen pays within the discount period and incurs freight-in costs of $1,500 and installation and testing costs of $6,000. Katen insures the machine for the first year of its use for $2,800.
Required:
Prepare the journal entry to record the acquisition of the machine.
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