A company using the perpetual inventory system purchased inventory worth $11,000 on account with credit terms of 4/15, n/30. Defective inventory was received, but instead of a return, an allowance of $1,000 is given. The allowance is before the invoice is paid. The joumal entry to record the allowance would be OA. $960 debit to Accounts Payable and $960 credit to Merchandise Inventory OB. $1,000 debit to Accounts Payable and $1,000 credit to Merchandise Inventory C. $1,000 debit to Merchandise Inventory and $1,000 credit to Accounts Payable OD. $960 debit to Merchandise Inventory and $960 credit to Accounts Payable