Ruby Gems Purchases Inventory from Diamond Mining

Multiple Choice

Ruby Gems purchases inventory from Diamond Mining.On 3 September,they received a credit note from Diamond Mining as they had been charged $3.85 rather than $3.58 for each of the 100 items purchased.What entry will Diamond Mining make? Ignore GST.

A) Accounts payable-Ruby Gems 27 Inventory 27
B) Inventory 27 Accounts payable-Ruby Gems 27
C) Sales returns and allowances 27 Accounts receivable-Ruby Gems 27
D) Sales returns and allowances 27 Inventory 27