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Merchandise purchased had a retail price of $10,000 and a 20% trade discount was obtained. Which of the following best describes the correct recording of
Merchandise purchased had a retail price of $10,000 and a 20% trade
discount was obtained. Which of the following best describes the correct
recording of this transaction?
a. Recorded at $ 8,000
b. Recorded at $10,000, $2,000 as Purchase Discount
c. Recorded at $10,000, no discount
d. Recorded at Fair Market Value of 9,800
e. None of the above
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