A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, the correct journal entry to record the merchandise return on July 7 is: Debit Accounts Payable $200; credit Merchandise Inventory $200. Debit Merchandise Inventory $1,600; credit Cash $1,600. O Debit Merchandise Inventory $200; credit Sales Returns $200, Debit Merchandise Inventory $200; credit Accounts Payable $200