On March 1,20X3,Environmental Impacts Acquired Inventory on Account $\begin{array}{lcc}\text { Inventory } & 83,300 & \\\quad \text { Accounts Payable } & & 83,300\\\\\end{array}$

Multiple Choice

On March 1,20X3,Environmental Impacts acquired inventory on account.The cost of the inventory was $85,000.The terms of the purchase were 2/10,n/30.Upon inspection of the inventory on March 2,$4,800 worth of inventory was returned.Environmental Impacts paid for the inventory on March 8.The company uses a periodic inventory system.What journal entry will Environmental Impacts make on March 1,20X3?

A) $\begin{array}{lcc}\text { Inventory } & 83,300 & \\\quad \text { Accounts Payable } & & 83,300\\\\\end{array}$

B) $\begin{array}{lccc}\text { Inventory } & 85,000 \\\quad \text { Accounts Payable } & &85,000 & \\\\\end{array}$

C) $\begin{array}{lccc}\text { Inventory } & 85,000\\\quad \text { Cash Discounts on Purchases } && 1,700 \\\quad \text { Accounts Payable } & & 83,300\\\\\end{array}$

D) $\begin{array}{lccc}\text { Purchases } & 85,000\\\quad \text { Accounts Payable } & & 85,000 \\\\\end{array}$

E) $\begin{array}{lccc}\text { Purchases } & 85,000 \\\quad \text { Cash Discounts on Purchases } && 1,700\\\quad \text { Accounts Payable } & &83,300 \\\end{array}$