Amarillo Company experienced the following events during its first accounting period. (1) Purchased $5,000 of inventory on account. (2) Returned $1,000 of the inventory purchased in Event 1. (3) Paid the remaining balance in accounts payable for the inventory purchased in Event 1. Based on this information the journal entry necessary to record the return is Multiple Choice Account Title Inventory Accounts Payable Account Title Inventory Cash Cash Account Title Accounts Payable Inventory Account Title Inventory Debit 1,000 Debit 1,000 Debit 1,000 Debit 1,000 Credit 1,000 Credit 1,000 Credit 1,000 Credit 1,000

Amarillo Company experienced the following events during its first accounting period. (1) Purchased $5,000 of inventory on account: (2) Returned $1,000 of the inventory purchased in Event 1. (3) Paid the remaining balance in accounts payable for the inventory purchased in Event 1 Based on this information the journal entry necessary to record the return is Multiple Choice