A Company Purchased $1,800 of Merchandise on July 5 with Terms

Multiple Choice

A company purchased $1,800 of merchandise on July 5 with terms 2/10,n/30.On July 7,it returned $200 worth of merchandise.On July 28,it paid the full amount due.The correct journal entry to record the merchandise return on July 7 is:

A) Debit Merchandise Inventory $1,600;credit Cash $1,600.
B) Debit Merchandise Inventory $200;credit Accounts Payable $200.
C) Debit Merchandise Inventory $200;credit Sales Returns $200.
D) Debit Accounts Payable $200;credit Merchandise Inventory $200.
E) Debit Accounts Payable $1,800;credit Purchase Returns $200;credit Merchandise Inventory $1,600.