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Amarillo Company experienced the following events during its first accounting period. 1. Purchased $5000 of...

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Accounting

Amarillo Company experienced the following events during its first accounting period.

1. Purchased $5000 of inventory on account under terms 1/10/n30

2. Returned $1000 of the inventory purchased in event 1.

3. Paid the remaining balance in accounts payable within the discount period for the inventory purchased in event 1.

Based in this information, which of the following shows how paying off the account payable account (event 3) will affect the company's financial statements.

A. Assets = (4000), Liabilities (4000), Cash flows (4000), OA

B. Assets = (3950), Liabilities (3950), Expense, 3950, Net Income (3950), Cash flow (3950) OA

C. Assets = (4000), Liabilities (4000), Expense, 4000, Net Income (4000), Cash flow (4000) OA

D. Assets = (3950), Liabilities (3950), Cash flow (3950) OA

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