QUESTION 16 On December 22, 2019 Buyer Company placed an order to purchase merchandise on account from Seller, Inc. Seller lists the merchandise in the online catalog at a price of $8,000. Seller carries the goods on the balance sheet at a historical cost of $2,700. Buyer Company is a good customer and was able to negotiate the following terms: 0 a 2.5% trade discount and payment terms of 1/10, 1/30. The goods were shipped by Seller FOB shipping point on December 28, 2019 and were delivered to Buyer Company's facility on January 4, 2020. On December 28 (i.e., at the time of shipment), Seller paid $240 of shipping cost and on January 4, (at the time of delivery) Buyer Company returned $700 of merchandise to Seller (the returned items had an original cost to Seller of $280). Buyer Company paid Seller in full on January 5. Consider the above facts and select the answer choice below that represents the entry on Buyer Company's books for the January 4th return of goods. Accounts Payable $700 OA Merchandise Inventory $700 B. None of the answer choices provided are correct. Accounts Payable $280 . Merchandise Inventory $280 Sales Returns & Allowances $700 Accounts Payable $700 OD. Cost of Goods Sold $280 Merchandise Inventory $280 Accounts Payable $280 O Cost of Goods Sold $200 Accounts Payable 700 OF Purchase Returns & Allowances 700 QUESTION 17 1 Consider the blind count that is performed as part of the purchase of retail inventory. True or false: the blind count streamlines the purchase procedures by making the 3- way check unnecessary. True O False