James Company experienced the following events during its first accounting period:(1)Purchased $10,000 of inventory on account.(2)Returned $100 of inventory purchased in Event 1.(3)Sold the inventory for $12,000 cash.Based on this information, which of the following shows how the recognition of the return will affect the Company's financial statements?

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The Answer of James Company experienced the following events during its first accounting period:(1)Purchased $10,000 of inventory on account.(2)Returned $100 of inventory purchased in Event 1.(3)Sold the inventory for $12,000 cash.Based on this information, which of the following shows how the recognition of the return will affect the Company's financial statements?

James Company Experienced the Following Events During Its First Accounting