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Question - Cerdik Sdn. Bhd. purchased merchandise worth RM700 on credit, terms n/30 and returned merchandise worth RM150 on next day. What is the required journal entry to record the merchandise returns?
A. Debit Account Payable RM150; Credit Purchases Return & Allowances RM150.
B. Debit Account Payable RM150; Credit Merchandise Inventory RM150.
C. Debit Purchases Return & Allowances; Credit Merchandise Inventory RM150.
D. Debit Merchandise Inventory RM150; Credit Purchases Return & Allowances RM150.
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