Analyze the Following T-Account in the Ledger of Goldstein Company

Analyze the following T-account in the ledger of Goldstein Company. If $5,000 in the Inventory account represents merchandise purchased from a supplier, we can assume the company uses the

A) perpetual inventory method and $400 may represent a purchase return.
B) periodic inventory method and $400 may represent cost of goods sold.
C) perpetual inventory method and $400 may represent a purchase allowance.
D) Both A and C are correct.