A company purchased $1,900 of merchandise on July 5 with terms 210, 1/30. On July 7, it returned $200 worth of merchandise. On July 29, it pa u 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 rctum on July 7 is: Multiple Choice o Debit Accounts Payale $1.800; creclit Purchase Returns $200: credit Merchandise inventory $1,600. o Debit Accounts Payab e $200, credit Merchandise Inventory 5200 o Debit Merchand se inventory $1600; Credit Cash $1,600 o O Debit Merchandise Inventory $200; credit Accounts Payable 5200. o Debit Merchandise Inventory $200, credit Sales Returns 5200