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Amarillo Company experienced the following events during its first accounting period. (1) Purchased $6,600...

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Accounting

Amarillo Company experienced the following events during its first accounting period.
(1) Purchased $6,600 of inventory on account under terms 110,n30.
(2) Returned $1,800 of the inventory purchased in Event 1.
(3) Paid the remaining balance in account payable within the discount period for the inventory purchased in Event 1.
Based on this information, which of the following shows how the recognition of the cash discount (Event 1) will affect the company's financial statements?
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