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.Immediately after the three events have been recognized, the balance in the Inventory account is

Question

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Event 1 increased the balance in the Inventory account by $10,000. 
Event 2 decreased the balance in the Inventory account by $2,000. 
Event 3 did not affect the balance in the Inventory account since it represented only a payment of the account payable related to the inventory purchase. 
Therefore, the balance in the Inventory account after the three events is $8,000.

James Company Experienced the Following Events During Its Accounting Period