Medel Industries purchased $10,000 of merchandise on February 1, 2020 with credit terms of 2/10,...
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Accounting
Medel Industries purchased $10,000 of merchandise on February 1, 2020 with credit terms of 2/10, n/60. It returned $2,500 worth of merchandise on February 4. Medel uses the perpetual inventory system and gross method for recording purchase discounts. Assume Medel paid its invoice on February 9. What is the effect of the entry to record the payment on February 9 on Medels assets, liabilities and equity, respectively?
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