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Assume the perpetual inventory method is used. The company purchased $12,500 of merchandise on account under terms 3/10, n/30. The company returned $2,000 of
Assume the perpetual inventory method is used. The company purchased $12,500 of merchandise on account under terms 3/10, n/30. The company returned $2,000 of merchandise to the supplier before payment was made. The liability was paid within the discount period. All of the merchandise purchased was sold for $19,000 cash. What is the net cash flow from operating activities as a result of the four transactions? Multiple Choice $8,875. $8,815. $6,305. $6,500.
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