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Cost of the Truck

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Fresh Ltd buys a truck with a list price of $40 000. the dealer gives 15% reduction in list price and another 4% cash discount on the net price if payment is made in 25 days. Sales taxes amount to be $200 and the company paid another $300 to have a special tire installed. What should be recorded as cost of the truck?

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The solution explains how to determine the recorded cost of the truck.

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Fresh Ltd buys a truck with a list price of $40 000. the dealer gives 15% reduction in list price and another 4% cash discount on the net price if payment is made in 25 days. Sales taxes amount to be ...

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