Wholesale Company purchases nuts from producers and then sells them to retailers. The company began the year with inventory of $$120,000$ on hand. During the year, additional inventory transactions include:

Purchases of inventory on account totaled $$620,000,$ with terms $\frac{2}{10},\frac{n}{{30}_{{?}_{?}}}$

Freight charges paid by Macadamia were $$16,000$

Inventory with a cost of $$20,000$ was returned to suppliers for credit

All purchases on account were paid within the discount period

If the company uses the perpetual system, how would the inventory return be recorded?

dr$.$ Cash $$20,000$; cr$.$ Inventory $$20,000$

dr$.$ Accounts Payable $$20,000$; cr$.$ Purchase Returns $$20,000$

dr$.$ Inventory $$20,000$; cr$.$ Cash $$20,000$

dr$.$ Accounts Payable $$20,000$; cr$.$ Inventory $$20,000$

None of the options listed