James Company Experienced the Following Events During Its First Accounting

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