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Problem 1: Under the perpetual inventory system what is the correct entry for the credit purchase of 10 electric guitars at $250 per guitar plus GST of $25 each?
Select one:
a. Debit Inventory $2,500, debit GST Paid $250; credit Accounts Payable $2,750.
b. Debit Inventory $2,750; credit Accounts Payable $2,750.
c. Debit Inventory $2,750; credit accounts payable $2,500, credit GST Paid $250.
d. Debit Accounts Payable $2,750; credit Inventory $2,500, credit GST Collected $250.
Livingston Company pays utilities of $2,500 in cash. A company pays cash for utilities. How would this transaction be recorded?
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