Under a Periodic Inventory System, the Entries to Record a $2,600

Multiple Choice

Under a periodic inventory system, the entries to record a $2,600 sales return of undamaged goods for a sale originally made on account, when the merchandise had a cost of $1,200, include a:

A) debit to Inventory of $1,200.
B) debit to Sales Returns and Allowances of $2,600.
C) credit to Cost of Goods Sold of $2,600.
D) credit to Sales Returns and Allowances of $1,200.