Polk Company uses a perpetual inventory system and had the following transactions during November:November 6-Purchased $8,700 of inventory on account, terms 2/10, n/30. November 8-Returned $1,200 of defective units and received full credit. November 15-Paid the amount due. What journal entry will be recorded by Polk Company on November 15?
A. Debit Accounts Payable for $7,500, credit Purchase Discount for $150, and credit Cash for $7,350
B. Debit Accounts Payable for $7,350, credit Inventory for $150, and credit Cash for $7,200
C. Debit Accounts Payable for $7,500, credit Inventory for $150, and credit Cash for $7,350
D. Debit Accounts Payable and credit Cash for $7,350
Answer: C
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