Tyler returned $500 worth of merchandise within the discount period. The entry to record the return would be placed into what account?

Tyler purchased something on account. I'm using the gross method of recording.

1) Purchases xx

Accounts Payable xx

2) Return of merchandise w/in discount period

Accounts Payable 500

Purchases 500

3) Payment of remaining merchandise w/in discount period

Accounts Payable xx

Cash xx

Purchase discounts xx

Merchandise that can be discounted but returned w/in the discount period should be recorded with its original value.

The answer to your question is "Debit Accounts Payable/Suppliers Name for $500; credit Purchases Returns and Allowances for $500."