1. A company purchases inventory for $10,000, with terms 3/10, n/30. The company uses a perpetual system and the net method to record purchases. To record this transaction, the company debits the Inventory account for $9,970. Which of the following statements is correct?

1. The company should instead credit Inventory.
2. The company should instead debit Purchases.
3. The recorded amount should instead be $9,700.
4. Two of the other answers are correct.