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Question - Logan Company made a purchase of merchandise on credit from Claude Corporation on August 3, for P6,000, terms 2/10, n/45. On August 10, Logan makes the appropriate payment to Claude. What the entry on August 10 for Logan Company which uses perpetual inventory system?
(DR) Accounts Payable 5,880 (CR)Cash 5,880
(DR) Accounts Payable 6,000 (CR) Purchase Returns and Allowances 120 (CR) Cash 5,880
(DR) Accounts Payable 6,000 (CR) Merchandise Inventory 120 (CR) Cash 5,880
(DR) Accounts Payable 6,000 (CR) Cash 6,000
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