James Company Experienced the Following Events During Its Accounting Period

question 183

Multiple Choice

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

• A)$2,000
• B)$8,000
• C)$10,000
• D)Zero