Adams Company Is a Retailer and Uses a Perpetual Inventory

Multiple Choice

Adams Company is a retailer and uses a perpetual inventory system.Which statement is correct?

A) Returns of merchandise by Adams Company to a manufacturer are credited to Inventory.
B) Freight paid to get merchandise to Adams Company's store is debited to Freight Expense.
C) A return of merchandise by one of Adams Company's customers is credited to Inventory.
D) Discounts taken by Adams Company's customers are credited to Inventory.