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 $360 with a cost of $210 would be recorded by the seller as a:

A) credit to Accounts Receivable for $210.
B) credit to Sales Returns and Allowances for $210.
C) debit to Sales Revenue for $360.
D) debit to Inventory for $210.