Home Brew Supplies Inc. uses the perpetual inventory method. Home Brew requested a price reduction from a vendor because the merchandise that was purchased did not meet specifications. The vendor sent Home Brew a credit memorandum for $2,300 to resolve the issue. How would Home Brew record this transaction?

a)Debit Cost of Goods Sold for $2,300 and credit Accounts Payable for $2,300.
	b) Debit Merchandise Inventory for $2,300 and credit Accounts Payable for $2,300.
	c) Debit Accounts Payable for $2,300 and credit Merchandise Inventory for $2,300.
	d) Debit Purchase Returns and Allowances for $2,300 and credit Accounts Payable for $2,300.
	e) Debit Accounts Payable for $2,300 and credit Purchase Returns and Allowances for $2,300.