Which statement best describes the difference between purchase returns and purchase allowances?

Purchase returns increase inventory and accounts payable, while purchase allowances decrease inventory and accounts payable.

Purchase returns increase inventory and accounts payable, while purchase allowances increase inventory value but keep the goods.

Purchase returns decrease inventory and accounts payable, while purchase allowances decrease inventory value but keep the goods.

Purchase returns decrease inventory and accounts payable, while purchase allowances increase inventory and accounts payable.