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A company purchased $2,900 of merchandise on July 5 with terms 2/10, 1/30. On July 7, it returned $750 worth of merchandise. On July 12.

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A company purchased $2,900 of merchandise on July 5 with terms 2/10, 1/30. On July 7, it returned $750 worth of merchandise. On July 12. It paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct Journal entry to record the payment on July 12 is: Multiple Choice Debit Merchandise inventory $2,150;credit Cash $2,750 Debit Accounts Payable $2,750; credit Merchandise inventory 543; credit Cash $2107 O Debit Accounts Payable $2,900; credit Coth $2,900 O Debit Canh $2,950; credit Accounts Payable $2,150. Debit Accounts Payable $2,150, credit Cash $250

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