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Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for $16,500. Assume the company uses a perpetual inventory system, and records
Farthington Soccer Supplies purchases merchandise from a supplier on credit, terms 2/10, n/30 for $16,500. Assume the company uses a perpetual inventory system, and records purchases using the gross method. When recording the purchase transaction in its purchases journal, Farthington would enter Multiple Choice 18 $16,500 in the Accounts Payable Cr. column and $16,500 in the Inventory Dr column $16,500 in the Accounts Payable Cr. column and $16.500 in the Supplies Dr. column $16,500 in the Inventory Dr. column, $16170 in the Accounts Payable Cr. column, and $330 in the Purchase Discount Cr column $16170 in the Inventory Dr. column and $16,170 in the Accounts Payable Cr. column.
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