In January, X Company purchased some equipment with $100,000 that it borrowed from a local...
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Accounting
In January, X Company purchased some equipment with $100,000 that it borrowed from a local bank. The accountant recorded the transaction as an increase in Inventories and an increase in Accounts Payable As a result, on the January balance sheet, Accounts Payable was understated. Cash was understated. Total liabilities were understated. Retained Earnings was overstated. Inventories were overstated. Total assets were understated
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