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In January, X Company purchased some equipment with $100,000 that it borrowed from a local bank. The accountant recorded the transaction as an increase in

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In January, X Company purchased some equipment with $100,000 that it borrowed from a local bank. The accountant recorded the transaction as an increase in twentories and an increase in Accounts Payable As a result, on the January Dance sheet Accounts Payable was understated Total abilities were understated Total assets were understated Retained Earnings was overstated Cash was understated Inventories were overstated Su Are Tries 0/99

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