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14 November, 20:03

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?

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  1. 14 November, 23:38
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    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
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