B-Mart Has a Perpetual Inventory System

Multiple Choice

B-Mart has a perpetual inventory system.B-Mart sells $5,000 of blue jeans.The customer later brings $600 of blue jeans back to B-Mart because they are defective.Those blue jeans had a cost of $200.The customer agrees to keep the blue jeans and B-Mart agrees to a $200 allowance.Which of the following is one of the entries that B-Mart will use to record the return?

A) Debit Accounts Receivable for $200 and credit Inventory for $200
B) Debit Inventory for $200 and credit Accounts Receivable for $200
C) Debit Accounts Receivable for $200 and credit Sales Returns & Allowances for $200
D) Debit Sales Returns & Allowances for $200 and credit Accounts Receivable for $200