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 $1/10,$

$\frac{n}{30}.$ 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 $1$ is:

A$)$ Debit Merchandise Inventory $$1,500$; credit Sales Returns and Allowarces $$1,500.$

B$)$ Debit Accounts Payable $$1,500$; credit Purchase Returns and Allowances $$1,500.$

C$)$ Debit Accounts Payable $$1,500$; credit Cash $$1,500.$

D$)$ Debit Merchandise Inventory $$1,500$; credit Cash $$1,500.$

E$)$ Debit Accounts Payable $$1,500$; credit Merchandise Inventory $$1,500.$