Avery Supplies Uses a Periodic Inventory System B) C) D) $$\begin{array} { | l | r | r | } \hline \text { Accounts payable } & 400 & \\\hline \text { Cash } & & 400 \\\hline\end{array}$$

Multiple Choice

Avery Supplies uses a periodic inventory system.Avery purchased $10,000 of inventory on account.The terms were 3/10,n/30.The purchase was made on February 1.
-On February 2,Avery returned $400 of damaged goods to the supplier and was granted an allowance.How should Avery properly record the allowance?

A) $$\begin{array} { | l | r | r | } \hline \text { Accounts payable } & 400 & \\\hline \text { Purchase returns and allowances } & & 400 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Accounts payable } & 9,600 & \\\hline \text { Purchase discounts } & 400 & \\\hline \text { Purchases } & & 10,000 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Accounts payable } & 10,000 & \\\hline \text { Cash } & & 9,600 \\\hline \text { Purchase returns and allowances } & & 400 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Accounts payable } & 400 & \\\hline \text { Cash } & & 400 \\\hline\end{array}$$