The following journal entry was included in the accounting records of Spica, Inc. Oct. 15 Accounts Payable 4,000 Inventory 40 Cash 3, 960 Based on this information, it is likely that Spica: purchased inventory for cash. sold inventory for cash. collected cash for inventory sold on credit, and recognized a 1% sales discount. paid for inventory purchased on credit, and took advantage of a 1% purchase discount