Davis Hardware Company Uses a Perpetual Inventory System $$\begin{array} { l c } \text { Inventory } & 200 \\\text { Accounts Payable } & 200\end{array}$$

Davis Hardware Company uses a perpetual inventory system. How should Davis record the return of inventory previously purchased on account for $200?

A) $$\begin{array} { l c } \text { Inventory } & 200 \\\text { Accounts Payable } & 200\end{array}$$
B) $\begin{array} { l l } \text { Accounts Payable } & 200 \end{array}$
Inventory
200
C) $\begin{array} { l l } \text { Purchase Returns } & 200 \end{array}$
Accounts Payable $\quad 200$
D) Accounts Payable $\quad 200$
Purchase Returns $\quad 200$