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Microsoft Corporation purchased inventory for $800,000 on credit terms of 2/10, net 30. They paid for the inventory within the discount period. Requirements: a. Record
Microsoft Corporation purchased inventory for $800,000 on credit terms of 2/10, net 30. They paid for the inventory within the discount period. Requirements: a. Record the purchase of inventory by Microsoft Corporation. b. Calculate the cash discount available. c. Prepare the journal entry to record the payment for the inventory. d. Determine the total amount paid. e. Analyze the impact of the cash discount on the income statement and balance sheet.
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