James Company Experienced the Following Events During Its First Accounting

question 128

Multiple Choice

James Company experienced the following events during its first accounting period: (1) Purchased $10,000 of inventory on account under terms 1/10 n/30.(2) Returned $2,000 of the inventory purchased in Event 1(3) Paid the remaining balance in account payable within the discount period for the inventory purchased in Event 1 Immediately after the three events have been recognized, the balance in the inventory account is

• A)$7,920
• B)$8,000
• C)$10,000
• D)Zero

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Definitions:

Welfare Banks

Financial institutions focused on providing services and support to individuals in need, though not a widely recognized term in traditional finance.

Credit Unions

Member-owned financial cooperatives that provide savings, credit, and other financial services to their members.

Check-Cashing Stores

Businesses that offer check cashing services and other financial transactions, often serving underbanked communities.

Means of Payment

Various methods through which debts can be paid, ranging from physical currency to electronic transfers of funds.