Elijah uses the perpetual inventory stom. On July 5. Elijah returned $12,000 of goods purchased on account to the seller. How would Elijah record this transaction? 12,000 12,000 12,000 12,000 A) Accounts Payable Inventory B) Accounts Receivable Inventory C) Accounts Payable Purchases D) Cash Purchases 12,000 12,000 12,000 12,000 10. Using a periodic inventory system, the buyer's journal entry to record the return of merchandise purchased on account includes a: A) Credit to Purchase Returns B) Debit to Inventory C) Credit to Accounts Payable D) Debit to Cost of Goods Sold 11. All merchandise purchased for resale by a firm is initially recorded in the Purchases account when the firm uses the periodic inventory system. a. True b. False