Amerchandiserretumed inventory worth $1,200 that was purchased on account. In a periodic Inventory system, the journal entry to record the return would include OA a debt to Accounts Payable for $1,200 and a $1.200 credit to Purchase Retums and Allowances COB. debt to Purchase Retums and Allowances for $1.200 and a credit to Accounts Payable for $1.200 OC. debit to Accounts Payable for $1.200 and a credit to purchases for $1.200 OD. a debt to Purchases for $1,200 and a credit to Accounts Payable for $1,200