Under a Perpetual Inventory System, the Entry to Record the Return

Multiple Choice

Under a perpetual inventory system, the entry to record the return of inventory sold on account for $250 with a cost of $185 would be recorded by the seller as a:

A) debit to Accounts Receivable for $250.
B) debit to Sales Returns and Allowances for $185.
C) credit to Sales Revenue for $250.
D) credit to Cost of Goods Sold for $185.