The Company Returned $500 of Damaged Merchandise Purchased on Credit

The company returned $500 of damaged merchandise purchased on credit. The entry to record this under the periodic inventory system is:

A) debit Cost of Goods Sold $500; credit Accounts Payable $500.
B) debit Merchandise Inventory $500; credit Accounts Payable $500.
C) debit Accounts Payable $500; credit Purchases Returns and Allowances $500.
D) debit Accounts Payable $500; credit Merchandise Inventory $500.