Linville Company purchased goods on account with a cost of $1,400 on July 15, terms 2/10, net/30, on which a return of $100 is granted on July 18. In the tabular analysis that follows, the merchandise return on July 15 is recorded with
a. a decrease to Inventory $98, and a decrease to Accounts Payable $98.
b. a decrease to Inventory $100, and a decrease to Accounts Payable $100.
c.an increase to Cash $100, and a decrease to Inventory $100.
d.an increase to Cash $98, and a decrease to Cost of Goods Sold $98..
Assets=Liabilities+Stockholders' Equity Accounts Common Retained Earnings
Cash Inventory=Payable+Stock+Rev.-Exp.-Div.