Answer:
debit Accounts Payable—Jones, credit Merchandise Inventory.
Explanation:
When inventory is purchased on account, it increases the merchandise inventory balance along with the liability towards the payment.
When some inventory out of the above is returned, it decreases the inventory, and thus accordingly it is credited by the same.
Further it decreases the accounts payable by the same as such amount is not required to be paid.
Therefore, correct option is
Statement A
