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ABC Corporation purchased on credit and received $2,500 worth of goods to be sold in its stores. How would the transaction be recorded assuming it
ABC Corporation purchased on credit and received $2,500 worth of goods to be sold in its stores. How would the transaction be recorded assuming it uses a perpetual inventory system?
A. | The transaction would not be recorded at this time. | |
B. | A $2,500 increase in inventory and a $2,500 increase in accounts payable. | |
C. | A $2,500 increase in inventory and a $2,500 increase in expenses. | |
D. | A $2,500 increase in expenses and a $2,500 increase in accounts payable | |
E. | A $2,500 decrease in expenses and a $2,500 decrease in accounts payable. |
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