On March 1,20X3,Environmental Impacts Acquired Inventory on Account $\begin{array}{lcc}\text { Accounts Payable } & 80,200 & \\\quad \text { Cash } & & 80,200\\\end{array}$

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 8,20X3?

A) $\begin{array}{lcc}\text { Accounts Payable } & 80,200 & \\\quad \text { Cash } & & 80,200\\\end{array}$

B) $\begin{array}{lccc}\text { Accounts Payable } & 80,200\\\quad \text { Cash Discounts on Purchases } && 1,604 \\\quad \text { Cash } & &78,596 \\\end{array}$

C) $\begin{array}{lccc}\text { Accounts Payable } & 80,200 & \\\quad \text { Cash Discounts on Purchases } & & 802\\\quad \text { Cash } & & 79,398\\\end{array}$

D) $\begin{array}{lccc}\text { Accounts Payable } & 80,200& \\\quad \text { Inventory } & & 1,604 \\\quad \text { Cash } & & 78,596\\\end{array}$

E) $\begin{array}{lccc}\text { Accounts Payable } & 80,200\\\quad \text { Purchases } & & 1,604 \\\text { Cash } & & 78,596\end{array}$