On June 1, Neighbor Company purchased inventory on account witha cost of $5,000. The credit terms were 2/10, net 30. On June 2,Neighbor Company returned 50 percent of the inventory. NeighborCompany uses the perpetual inventory system. On June 8, NeighborCompany paid for the inventory. What journal entry did NeighborCompany prepare on June 8?
A. debit Accounts Payable for $2,500 and credit Cash for$2,500
B. debit Accounts Payable for $2,500, credit Inventory for $50and credit Cash for $2,450
C. debit Purchase Discount for $50, debit Cash for $2,450 andcredit Accounts Payable for $2,500
D. debit Accounts Payable for $2,500, credit Purchase Discountfor $50 and credit Cash for $2,450
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