You entered an invoice of 12,000 and paid it for Office Suppliers. The payment was never received by the supplier, and you decide to return the entire order. What should you do? 

Cancel the invoice, which debits the liability and credits the expense. 

Issue a credit memo, which will debit the liability and credit the expense. 

Void the payment, which debits cash and credits the liability, and then issue a credit memo, which debits the liability and credits the expense. 

Void the payment, which debits cash and credits the liability, and then cancel the invoice, which debits the liability and credits the expense.