Find which would be correct journal entry to record returns

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Problem 1: A company that uses a perpetual inventory system purchased inventory on account and later returned goods worth $400 to the vendor (prior to payment). Which of the following would be the correct journal entry to record these returns?

a. Merchandise inventory 400
accounts payable 400

b. accounts payable 400
Merchandise inventory 400

c. accounts payable 400
purchase returns 400

d. purchase returns 400
accounts payable 400

Reference no: EM132946263

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