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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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