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ABC Co. uses the gross method for discounts of inventory purchased. ABC Co. has the following transaction for December, 2021. December 1-Purchase inventory for
ABC Co. uses the gross method for discounts of inventory purchased. ABC Co. has the following transaction for December, 2021. December 1-Purchase inventory for $10000 on account 2/00, n/30. December 6-paid A/P for December 1 purchase. Which one of the following journal entries is correct for December 6 payment transaction? Select one: a. Debit A/P 10000, credit Cash 9800, debit discount 200 b. Debit A/P 10000, credit Cash 10,000 c. Debit Cash 9800, debit discount 200, credit A/P 10000 d. Debit cash 10000, credit A/P 10000
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