Which of the following journal entries is recorded when a firm makes payment for a...
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Accounting
Which of the following journal entries is recorded when a firm makes payment for a $500 purchase invoice, assuming that it is taking advantage of a 2% cash discount?
a). Debit accounts payable $500; credit purchases discounts $10; credit cash $490.
b). Debit accounts payable $490; debit purchases discounts $10; credit cash $500.
c). Debit cash $490; debit purchases discounts $10; credit accounts payable $500.
d). Debit cash $500; credit purchases discounts $10; credit accounts payable $490
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You can see the logs in the Dashboard.