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Question - On December 28, 2021, Wildcat Corporation purchased 12 units of inventory for $27,000 each. The terms of each sale were 1/10, n/30.
Wildcat Corporation uses the gross method to account for purchase discounts and a perpetual inventory system.
The company paid the net-of-discount amount on January 6, 2022.
Prepare the journal entries on December 28 and January 6 to record the purchase and payment.
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