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The following events involving a recent purchase of merchandise were recorded by Thomson Company: Purchased goods on credit for $125,000, terms 1/15, n/45. Returned $11,000
The following events involving a recent purchase of merchandise were recorded by Thomson Company:
Purchased goods on credit for $125,000, terms 1/15, n/45.
Returned $11,000 of the shipment for credit on account.
Paid transportation in cost of $2,000.
Paid the invoice within the discount period. As a result of these events, the companys merchandise inventory:
Select one:
A. Increased by $127,000.
B. Increased by $114,860.
C. Increased by $125,000.
D. Increased by $112,860.
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