Casey Company Purchases Goods for Resale from Tim Corporation

Casey Company purchases goods for resale from Tim Corporation. The amount of the purchase is $12,500 with terms of 3/10, n/30. Casey returns $500 of the goods. Under the perpetual inventory method, the journal entry to record the return is:

A) debit Accounts Payable; credit Purchase Returns and Allowances.
B) debit Purchase Returns and Allowances; credit Accounts Payable.
C) debit Accounts Payable; credit Inventory.
D) debit Accounts Payable; credit Purchase Discounts.
E) debit Accounts Receivable; credit Inventory.