A Firm Uses the Periodic Inventory Method

Multiple Choice

A firm uses the periodic inventory method.Which of the following entries would be made to record a return of $220 of inventory purchased on credit,including GST?

A) The accounting entry would be a $200 debit to Accounts payable and a $200 credit to Purchases.
B) The accounting entry would be a $220 debit to Purchases and a $220 credit to Accounts payable.
C) The accounting entry would be a $200 debit to Purchase returns and allowances,a $20 debit to GST clearing and a $220 credit to Accounts payable.
D) The accounting entry would be a $220 debit to Accounts payable a $200 credit to Purchase returns and allowances,and a $20 credit to GST clearing.