QUESTION 14 Your company, which uses the perpetual method, purchases inventory for $7,000 on account. Before paying the invoice, y our firm returns damaged goods for a $650 credit debit Cost of Goods Sold, credit Inventory debit Accounts Payable, credit Purchase Returns and Allowances debit Accounts Payable; credit Inventory debit Purchase Returns and Allowances; credit Accounts Payable debit Accounts Payable; credit Cost of Goods Sold 2 po QUESTION 15 ABC Company purchases inventory on account from XYZ: ABC records the cost of the inventory purchase when the order is placed when the invoice is received when the merchandise has been delivered on the purchase date specified in the purchase agreement when legal title passes from XYZ to ABC QUESTION 16