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K On June 1, Addison Company purchased $10,000 of inventory on account from Garrison Company. Garrison offers a 5% discount if payment is received
K On June 1, Addison Company purchased $10,000 of inventory on account from Garrison Company. Garrison offers a 5% discount if payment is received within 15 days. Addison records the purchase using the gross method and the perpetual inventory system. The journal entry on June 1 by Addison Company includes OA a credit to Cash for $10,000 OB. a debit to Inventory for $9,500 OC. a debit to Inventory for $10,000 OD. a credit to Accounts Payable for $9,500
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