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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
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 account payable for the inventory purchased in Event 1.
(4) Sold inventory purchased in Event 1 for $5,000 to customers on account.
At the end of the first accounting period what would be reported on the Income Statement for net income?
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