Juniper Company uses a perpetual inventory system and the gross method of accounting for purchases. The company purchased $$9,750$ of merchandise on August $7$ with terms $\frac{1}{10},$ n$/30.$ On August $11,$ it returned

$$1,500$ worth of merchandise. On August $16,$ it paid the full amount due. The correct journal entry to record the purchase on August $7$ is:

Multiple Choice

Debit Merchandise Inventory $$9,750$; credit Sales Returns and Allowances $$1,500$; credit Cash $$8,250.$

Debit Accounts Payable $$8,250$; debit Purchase Returns and Allowances $$1,500$; credit Merchandise Inventory $$9,750.$

Debit Merchandise Inventory $$9,750$; credit Cash $$9,750.$

Debit Accounts Payable $$9,750$; credit Merchandise Inventory $$9,750.$

Debit Merchandise Inventory $$9,750$; credit Accounts Payable $$9,750.$