The following journal entry was included in the accounting records of Spica, Inc Oct. 15 Accounts Payable 4,000 Inventory 40 Cash 3,960 Based on this information, it is likely that Spica:
A) purchased inventory for cash.
B) paid for inventory purchased on credit, and took advantage of a 1% purchase discount.
C) sold inventory for cash.
D) collected cash for inventory sold on credit, and recognized a 1% sales discount.
B
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