On March 1,20X3,Environmental Impacts Acquired Inventory on Account $\begin{array}{llc}\text { Accounts Payable } & 4,704 & \\\quad \text { Inventory } & & 4,704 \\\end{array}$

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 2,20X3?

A) $\begin{array}{llc}\text { Accounts Payable } & 4,704 & \\\quad \text { Inventory } & & 4,704 \\\end{array}$

B) $\begin{array}{lccc}\text { Accounts Payable } & 4,800 & \\\quad \text { Inventory } & & 4,800 \\\end{array}$

C) $\begin{array}{lccc}\text { Accounts Payable } & 4,800 & \\\quad \text { Purchases } & & 4,800 \\\end{array}$

D) $\begin{array}{lccc}\text { Accounts Payable } & 4,800 & \\\quad \text { Purchase Returns and Allowances } & & 4,800 \\\end{array}$

E) $\begin{array}{lccc}\text { Accounts Payable } & 4,704 & \\\text { Cash Discounts on Purchases }& 96 \\\quad \text { Purchase Returnsand Allowances }&& 4,800\end{array}$