On May 1,Santelle Company Purchased $700 of Inventory on Account

On May 1,Santelle Company purchased $700 of inventory on account with credit terms of 4/10,net 30.Santelle uses the perpetual inventory system.On May 2,the seller gave Santelle a $100 allowance due to a product defect.What journal entry did Santelle Company prepare on May 2?

A) debit Accounts Payable for $100 and credit Purchase Returns and Allowances for $100
B) debit Accounts Payable for $100 and credit Purchase Discounts for $100
C) debit Cash for $100 and credit Accounts Payable for $100
D) debit Accounts Payable for $100 and credit Inventory for $100