Dorothea Company acquired several fixtures for its new building, including display cases, shelves and hanging racks. The invoice price of the fixtures was P700,000. The entity received a 2% cash discount by paying within the discount period. Freight and insurance during shipment totaled P3,000. Costs of assembling and installing fixtures were 5,000. While installing a display case, a new employee carelessly broke a glass top. This top was replaced at a cost of P2,000. What total amount should be recorded as cost of the fixtures?
Dorothea Company acquired several fixtures for its new building, including display cases, shelves and hanging racks. The invoice price of the fixtures was P700,000. The entity received a 2% cash discount by paying within the discount period. Freight and insurance during shipment totaled P3,000. Costs of assembling and installing fixtures were 5,000. While installing a display case, a new employee carelessly broke a glass top. This top was replaced at a cost of P2,000. What total amount should be recorded as cost of the fixtures?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Dorothea Company acquired several fixtures for its new building, including display cases, shelves and hanging racks. The invoice price of the fixtures was P700,000. The entity received a 2% cash discount by paying within the discount period. Freight and insurance during shipment totaled P3,000. Costs of assembling and installing fixtures were 5,000. While installing a display case, a new employee carelessly broke a glass top. This top was replaced at a cost of P2,000. What total amount should be recorded as cost of the fixtures?
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