Fluffer company incurred the following costs 1 sales tax on


Fluffer Company incurred the following costs.

1. Sales tax on factory machinery purchased, $7,000.

2. Painting of and lettering on truck immediately upon purchase, $800.

3. Installation and testing of factory machinery, $2,500.

4. Real estate broker's commission on land purchased $4,500.

5. Insurance premium paid for first year's insurance on new truck $930.

6. Cost of landscaping on property purchased, $9,200.

7. Cost of paving parking lot for new building, $18,700.

8. Cost of clearing, draining, and filling land, $14,400.

9. Architect's fees on self-constructed building, $11,000.

Instructions:

a) Indicate to which account Trudy would debit each of the costs.

b) Explain why item 1 is not debited to an expense account.

c) Explain why items 7 and 8 are debited to different accounts.

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Business Management: Fluffer company incurred the following costs 1 sales tax on
Reference No:- TGS02658457

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