1. If merchandise sold on the account is damaged in shipment, the seller may inform the customer of a reduction to the customers account by issuing a

a.purchase invoice

b.credit memo

c.debit memo

d.sales invoice

2. When merchandise purchased on the account is returned under the perpetual inventory system, the buyer would debit

a.Merchandise Inventory

b.Accounts Receivable

c.Purchases Returns and Allowances

d.Accounts Payable