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On February 1, Neighbor Company purchased inventory on account with a cost of $4,000. The credit terms were 3/10, net 30. On February 2,
On February 1, Neighbor Company purchased inventory on account with a cost of $4,000. The credit terms were 3/10, net 30. On February 2, Neighbor returned 25% of the inventory. Neighbor uses the perpetual inventory system. On February 3, Neighbor paid for the inventory. What journal entry did Neighbor Company prepare on February 3? debit Accounts Payable for $3,000, credit Inventory for $90 and credit Cash for $2,910 debit Accounts Payable for $3,000, credit Purchase Discount for $90, and credit Cash for $2,910 debit Accounts Payable for $3,000 and credit Cash for $3,000 debit Accounts Payable for $4,000, credit Inventory for $120 and credit Cash for $3,880
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