Danton Company uses a periodic inventory system. How should Danton record the return of inventory previously purchased on account for $200?
1. Inventory 200
Accounts Payable 200
2. Accounts Payable 200
Inventory 200
3. Purchase Returns 200
Accounts Payable 200
4. Accounts Payable 200
Purchase Returns 200
A) Option 1
B) Option 2
C) Option 3
D) Option 4
Answer: D
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