Final answer:
The total cost of the equipment for the Erin Danielle Company should be recorded as $25,800, which includes the cash price, sales taxes, insurance during transit, and installation and testing fees.
Step-by-step explanation:
Cost of Equipment Recording
The cost of the equipment should be recorded as the sum of all costs incurred to get the equipment ready for use. This includes the cash price of the equipment, sales taxes, insurance during transit, and installation and testing fees.
Therefore, the equipment should be recorded at a cost of $25,800, which is the total amount paid for all these charges.
The breakdown of the costs is as follows:
Cash price: $24,000
Sales taxes: $1,200
Insurance during transit: $200
Installation and testing: $400
Total cost recorded: $25,800