Wexim Toys purchased merchandise from a supplier on credit, terms 2/10, n/30 for $12,100. Three days later, the company returned $2,500 of the merchandise. When recording the return transaction, the company would record:

Multiple Choice

• $2,500 in the Accounts Payable Cr. column and $2,500 in the Inventory Dr. column of the purchases journal.

• Debit Accounts Payable $2,500 and credit Inventory $2,500 in the general journal.

• $2,500 in the Cash Cr. column and $2,500 in the Inventory Cr. column in the cash disbursements journal.

• Debit Cash $2,500 and credit Inventory $2,500 in the general journal.

• $2,500 in the Accounts Payable Dr. column and $2,500 in the Cash Cr. column of the cash disbursements journal.