4.2-*PLEASE ANSWER ALL 5 QUESTIONS*

5 multiple choice questions.

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statements of only the purchase return? 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 Multiple Choice $2,000 $8,000 $10,000 Zero A perpetual inventory system updates the Merchandise Inventory account for all purchases of inventory, as well as returns of inventory to suppliers. True or False James Company experienced the following events during its first accounting period: (1) Purchased $10,000 of inventory for cash. (2) Returned $200 of the inventory purchased in Event 1. Inventory was returned for cash. Based on this information, which of the following shows how the recognition of the return will affect the Company's financial statements? Amarillo Company experienced the following events during its first accounting period. (1) Purchased $5,320 of inventory for cash. (2) Returned $132 of the inventory purchased in Event 1. Based on this information, which of the following shows how the recognition of the return will affect the company's financial statements? Multiple Choice