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On May 1 Ehrmantraut Co . purchases $ 2 5 , 0 0 0 with terms of 2 1 0 n 3 0 . Using

On May 1 Ehrmantraut Co. purchases $25,000 with terms of 210n30. Using the gross price method what is the correct journal entry to record the payment on May 9?
debit cash $24,500, inventory $500 and credit accounts payable $25,000
credit cash $24,500, inventory $500 and debit accounts payable $25,000
credit to inventory and debit to accounts payable of $24,500
debit to inventory and credit to accounts payable of $24,500
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