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Question: Grogan Company purchases inventory on account with a cost of $800 and a retail price of $1,600. Grogan Company uses the perpetual inventory method. What journal entry is required on the date of purchase?
A. Debit purchases for 1,600 and credit cash for 1,600
B. debit inventory for 800 and accounts payable for 800
C. debit purchases for 800 and credit accounts payable for 800
D. debit accounts recievable for 1600 and credit purchases for 1600
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