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 perpetval inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise return on July 7 is Amortizing a bond discount: Allocates a portion of the total discount to interest expense each interest period. Increases cash flows from the bond. Increases the market value of the Bonds Payable. Decreases the Bonds Payable account. Decreases interest expense each period