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Problem 1: BPL LTd. recently returned 3000 units to its supplier because they were defective. The company uses a perpetual inventory system and not yet paid for the merchandise. Which of the following journal entries would have to be made correctly record the return of the merchandise?
a: - A debit to Merchandise Inventory and a credit to Account Payableb: - A debit to Merchandise Inventory and a credit to Purchase Allowancesc: - A debit to Account Payable and a credit to Merchandise Inventoryd: - A debit to Account Payable and a credit to Cash
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