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 periodic inventory system?

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

B)
$\begin{array}{lll}\text { Accounts Payable } & 100 \\\text { Merchandize Inventory } & & 100\end{array}$

C)
$\begin{array}{lll}\text { Merchandize Inventory } & 100 \\\quad \text { Purchases Returns and Allowances } & & 100\end{array}$

D)
$\begin{array}{l}\text { Purchases Returns and Allowances }&100 \\\text { Merchandize Inventory }&&100\end{array}$