Juniper Company. Inc. uses a perpetual inventory system. The company purchased $9.750 of merchandise on August 7 with terms 1/10, n/30. On August 11 it returned $1, 500 worth of merchandise. On August 26. It paid the full amount due. The correct journal entry to record the merchandise return on August 11 is Debit Accounts Payable $1, 500; credit Cash $1, 500. Debit Accounts Payable $1, 500; credit Merchandise inventory $1, 500. Debit Merchandise inventory $1, 500; credit Cash $1, 500. Debit Accounts Payable $1, 500; credit Purchase Returns $1, 500