Question
On April 16, Simon Records bought 130 CD players at $110 each. Terms of the purchase were 4/10, n/30. It pad for 60 CD players
On April 16, Simon Records bought 130 CD players at $110 each. Terms of the purchase were 4/10, n/30. It pad for 60 CD players on April 25 and paid for the remaining 70 Cd players on May 15. If Simon uses the Net Method to account for its inventory purchases, what is its cash payment and reduction of inventory on April 25? What is the amount of accounts paybable after the April 25 payment? Assume the perpetual inventory system is used.
Since Simon uses the net method to account for its inventory purchases, Simon's cash payment is $____ on April 25. The reduction of inventory is $____ on April 25.
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