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The Following Journal Entry Was Included in the Accounting Records

Question 75

Multiple Choice

The following journal entry was included in the accounting records of Spica, Inc. The following journal entry was included in the accounting records of Spica, Inc. Based on this information, it is likely that Spica: A) purchased inventory for cash. B) paid for inventory purchased on credit, and took advantage of a 1% purchase discount. C) sold inventory for cash. D) collected cash for inventory sold on credit, and recognized a 1% sales discount. Based on this information, it is likely that Spica:


A) purchased inventory for cash.
B) paid for inventory purchased on credit, and took advantage of a 1% purchase discount.
C) sold inventory for cash.
D) collected cash for inventory sold on credit, and recognized a 1% sales discount.

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