Heidi's Accessories bought 40 necklaces for $10 each on account. The invoice included 5% GST and payment terms of 2/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the return would include

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DThe entry to record the return of the necklaces would include a debit to Accounts Payable for $52.50, reflecting the return of 5 necklaces at $10 each, including the 5% GST (5 necklaces * $10 * 105% = $52.50). Additionally, there should be a debit to Inventory for $52.50 to reflect the reduction in inventory value due to the return, including the GST paid on the returned items.

Heidi's Accessories Bought 40 Necklaces for $10 Each on Account