Use the Information Above to Answer the Following Question

Multiple Choice

Use the information above to answer the following question.What journal entry (entries) will Darin Company make on October 4 to record the sales return?

A) Debit Sales Returns & Allowances and credit Accounts Receivable for $500; debit Inventory and credit Cost of Goods Sold for $200
B) Debit Sales Returns & Allowances for $200 and credit Accounts Receivable for $200
C) Debit Sales for $500 and credit Inventory for $500
D) Debit Accounts Receivable and credit Sales Returns & Allowances for $500; debit Cost of Goods Sold and credit Inventory for $200