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A company purchased Inventory with cash but mistakenly recorded the transaction as follows: DR Accounts Payable CR Cash A. As a result of the error,
A company purchased Inventory with cash but mistakenly recorded the transaction as follows:
DR Accounts Payable
CR Cash
A. As a result of the error, which accounts are overstated?
B. Which accounts are understated?
C. What journal entry would be necessary to correct this error?
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