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A merchandiser returned inventory worth $2,000 that was purchased on account. Under the periodic inventory system, the journal entry to record such returns would include:

A merchandiser returned inventory worth $2,000 that was purchased on account. Under the periodic inventory system, the journal entry to record such returns would include:

A.

a debit to Purchases for $2,000 and a credit to Accounts Payable for $2,000.

B.

a debit to Purchase Returns and Allowances for $2,000 and a credit to Accounts Payable for $2,000.

C.

a debit to Accounts Payable for $2,000 and a credit to Purchases for $2,000.

D.

a debit to Accounts Payable for $2,000 and a $2,000 credit to Purchase Returns and Allowances.

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