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TransAm Mail Service purchased equipment for $ 2 , 5 0 0 . TransAm paid $ 4 0 0 in cash and signed a note

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TransAm Mail Service purchased equipment for $2,500. TransAm paid $400 in cash and
signed a note for the balance. TransAm debited the Equipment account, credited Cash and
nothing further must be done
debited the retained earnings account for $2,100
credited another asset account for $400
credited a liability account for $2,100
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