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On July 1, Corrao Company purchased $1,700 of inventory on account with credit terms of 3/10, net 30. Corrao Company uses the perpetual inventory system.
On July 1, Corrao Company purchased
$1,700
of inventory on account with credit terms of
3/10,
net 30. Corrao Company uses the perpetual inventory system. On July 5, Corrao Company paid the amount due. What journal entry did they prepare on July 5?
A.debit Purchase Discount for
$51,
debit Accounts Payable for
$1,598
and credit Cash for$1,649
B.debit Accounts Payable for
$1,649
and credit Cash for $1,649
C.debit Accounts Payable for
$1,700,
credit Inventory for
$51
and credit Cash for $1,649
D.debit Accounts Receivable for
$ 1,700
and credit Cash for $ 1, 700
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