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38. Weldon Engineering owes one of its creditors $20,000. To settle the debt, Weldon pays $5,000 cash and also issues common stock valued at
38. Weldon Engineering owes one of its creditors $20,000. To settle the debt, Weldon pays $5,000 cash and also issues common stock valued at $15,000 to the creditor. How would this repayment of the $20,000 debt be recorded in Weldon's books? Debit debt owed $20,000; credit cash $5,000; credit common stock $15,000 Debit common stock $15,000; debit cash $5,000; credit debt owed $20,000 Debit common stock $15,000; debit debt owed $5,000; credit cash $20,000 Debit debt owed $5,000; credit cash $5,000
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