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Avery Company uses the periodic inventory system. On February 1, the corporation purchased inventory on account for $10,000. The terms of invoice were 5/10, n/30.
Avery Company uses the periodic inventory system. On February 1, the corporation purchased inventory on account for $10,000. The terms of invoice were 5/10, n/30. The amount due was paid on February 9. Which of the following journal entries correctly records the payment in the books of Avery Company? Accounts Payable 10,000 Purchase Discounts 500 Cash 9,500 Accounts Payable 10,000 Cash 10,000 Accounts Payable 10,000 Merchandise Inventory 500 Cash 9,500 Accounts Payable 10,000 Purchases 10,000
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