On June 1, Nicholson Company purchased inventory on account with a cost of $1,200. Credit terms were 2/10, net 30. On June 2, Nicholson Company retumed 40 percent of the inventory. Nicholson Company uses the perpetual inventory system. What journal entry did Nicholson Company prepare on Jun O A. debit Purchase Returns for $480 and credit Accounts Payable for $480 O B. debit Accounts Payable for $480 and credit Inventory for $480 O C. debit Cash for $1,200 and credit Accounts Payable for $1,200 OD. debit Purchase Returs for $1,200 and credit Accounts Payable for $1.200