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1. School Tools recently purchased inventory from one of its largest suppliers. The company receives an invoice, which states the credit terms 2/10, n/30. Is
1. School Tools recently purchased inventory from one of its largest suppliers. The company receives an invoice, which states the credit terms 2/10, n/30. Is the liability an example of an account payable, current portion of long-term debt, or short-term notes payable? 2. Peach Tree Inc. recently rebounded from financial troubles. To satisfy an overdue liability owed to an equipment supplier, the company issued a liability to satisfy the debt at a later date, which also bears interest at a 9% annual rate. Is the newly issued liability an example of an account payable, current portion of long-term debt, or short-term notes payable? 3. Pet Supply Co. incurred 10-year notes payable when constructing its newest office. The notes totaled $2.1 million, but in the upcoming year the company plans to pay $250,000 to the creditor. Is the $250,000 an example of an account payable, current portion of long-term debt, or short-term notes payable
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