On November 1, a company purchased inventory costing $1,000 on account. The payment terms are...
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Accounting
On November 1, a company purchased inventory costing $1,000 on account. The payment terms are 2/10, n30. The company paid on November 6 to receive the 2% discount. What is the impact on the companys financial statements of the cash payment of this account within the discount period?
1. Increase liability by $1500
2. Decrease cash by $1000
3. Decrease inventory by $20
4. Increase inventory by $20
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