James Company experienced the following events during its first accounting period: (1)Purchased $10,000 of inventory on account under terms 1/10 n/30.(2)Returned $2,000 of the inventory purchased in Event 1(3)Paid the remaining balance in account payable within the discount period for the inventory purchased in Event 1 Immediately after the three events have been recognized, the balance in the inventory account is

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The initial purchase was $10,000, and $2,000 was returned, leaving $8,000. Paying within the discount period gives a 1% discount on $8,000, which is $80. Therefore, the inventory balance is $8,000 - $80 = $7,920.

James Company Experienced the Following Events During Its First Accounting