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ABC Co. purchased goods with a list price of $230,000 and a trade discount of 20% based on the quantity purchased, with terms 2/10, net
ABC Co. purchased goods with a list price of $230,000 and a trade discount of 20% based on the quantity purchased, with terms 2/10, net 30. How much should ABC Co. record as the purchase cost of these goods on the date of purchase, assuming the company uses (i) the gross method and (ii) the net method?
Cost of goods purchased Net method
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