Question
On August 16, Wayco Computers bought 55 external hard drives on account at $40 each. Terms of the purchase were 3/10, n/30. It paid
On August 16, Wayco Computers bought 55 external hard drives on account at $40 each. Terms of the purchase were 3/10, n/30. It paid for 30 external hard drives on August 25 and paid for the remaining 25 external hard drives on September 15. If Wayco uses the gross method to account for its inventory purchases, what is its cash payment and reduction of inventory on August 25? What is the amount of accounts payable after the August 25 payment? Assume that the perpetual inventory system is used.
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