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During April, the Farmland Operations Company buys and pays for a six-month supply of fertilizer in order to receive a bulk discount. The cost of
During April, the Farmland Operations Company buys and pays for a six-month supply of fertilizer in order to receive a bulk discount. The cost of fertilizer is recorded:
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partially as an expense and partially as a liability.
immediately as an expense.
as a liability, which will later be decreased as the fertilizer used.
as an asset, which will later be decreased as the fertilizer is used.
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