- MyEagle X we Assignments: 6201-ACCT-2301-P X Ch 04 Quiz ect.mheducation.com/flow/connect.html Swed Help Save & Exit TB MC Qu. 04-110 A company purchased... A company purchased $1,800 of merchandise on July 5 with terms 2/10,n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise return on July 7 is: Multiple Choice O Debt Merchandise Inventory S1600, credit Cash $1600 Debit Merchandise inventory $200. credit Accounts Payable $200 C) Debit Merchandise Inventory $200. credit Soles Returns $200