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. (4) Sold inventory purchased in Event 1 for $10,000 to customers on account. At the end of the first accounting period what would be reported on the Income Statement for net income? Multiple Choice $8,000 $2,000 $10,000 Zero

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. (4) Sold inventory purchased in Event 1 for $10,000 to customers on account. At the end of the first accounting period what would be reported on the Income Statement for net income? Multiple Choice $8,000 $2,000 $10,000 Zero

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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