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Slinky Company purchased merchandise on June 10, 2016, at a price of $38,000, subject to credit terms of 3/10, n/30. Slinky uses the net method for recording purchases and uses a perpetual inventory system.
1. Prepare the journal entry to record the purchase.
2. Prepare the journal entry to record the appropriate payment if the entire invoice is paid on June 18, 2016.
3. Prepare the journal entry to record the appropriate payment if the entire invoice is paid on July 8, 2016.
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