Chancellor Company Purchased Merchandize Worth $900 on Credit,terms N/30 and Returned

Multiple Choice

Chancellor Company purchased merchandize worth $900 on credit,terms n/30 and returned merchandize worth $100 on next day.What is the required journal entry to record the merchandize returns under the perpetual inventory system?

A)
$\begin{array}{llr} \text { Accounts Payable } &100\\ \text { Purchases Returns and Allowances} &&100\\\end{array}$

B)
$\begin{array}{l}\text { Accounts Payable }&100 \\\text { Merchandize Inventory }&&100\end{array}$
C)
$\begin{array}{l}\text { Merchandize Inventory }&100 \\\text { Purchases Returns and Allowances }&&100\end{array}$
D)
$\begin{array}{llr} \text { Purchases Returns and Allowances } &100\\ \text {Merchandize Inventory } & &100\\\end{array}$