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Your firm, which uses the perpetual method, purchases $10,000 of inventory, 2/10, n/30. At the time of purchase, you debit Inventory for $9,800 and credit
Your firm, which uses the perpetual method, purchases $10,000 of inventory, 2/10, n/30. At the time of purchase, you debit Inventory for $9,800 and credit Account Payable for $9,800. If the merchandise is paid for within the discount period, you will: debit Account Payable for $9,800 debit Purchase Discounts Lost for $200 credit Purchase Discounts Lost for $200 credit Inventory for $200 credit Purchase Discounts for $200 debit Account Payable for $10,000
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