16. A company purchases inventory for $2,000 on account. Upon arrival of the inventory at the purchaser's place of business, it is discovered that $400 of the purchase is unsuitable and the company sends it back to the seller and receives full credit for the amount returned. Assuming that the company uses the periodic inventory method, to record the return, the company should .... A. Credit Accounts Payable for $400 B. Credit Purchase Returns and Allowances for $400 C. Debit Merchandise Inventory for $400 D. Debit Cash for $400 E.. None of the above