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Problem 1: Delilah Trading regularly buys its inventory from Mae Company and is allowed trade discount of 20% from the list price. Delilah made a purchase on October 5, and received an invoice with a list price of P45,000, a freight charge of P2,500, and payment terms of 2/10, net 30 days. Both companies use periodic inventory system. At what amount should Delilah record Purchases on October 5?
Option 1: P38,500
Option 2: P47,500
Option 3: P45,000
Option 4: P36,000
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