A company using the perpetual inventory system purchased inventory worth $15,000 on account with credit terms of 3/10, n/30. Defective inventory was received, but instead of a return, an allowance of $1,100 is given. The allowance is before the invoice is paid. The journal entry to record the allowance would be A. $1,067 debit to Merchandise Inventory and $1,067 credit to Accounts Payable B. $1,100 debit to Accounts Payable and $1,100 credit to Merchandise Inventory C. $1,100 debit to Merchandise Inventory and $1,100 credit to Accounts Payable D. $1,067 debit to Accounts Payable and $1,067 credit to Merchandise Inventory