Using a Perpetual Inventory System,what Is the Correct Journal Entry

Multiple Choice

Using a perpetual inventory system,what is the correct journal entry when a customer returns a product that was purchased on account?

A) A debit to Sales Returns & Allowances and a credit to Accounts Receivable; and a debit to Inventory and a credit to Cost of Goods Sold
B) A debit to Cash and a credit to Sales Returns & Allowances; and a debit to Inventory and a credit to Cost of Goods Sold
C) A debit to Accounts receivable and a credit to Sales Returns & Allowances; and a debit to Cost of Goods Gold and a credit to Inventory
D) A debit to Sales Returns & Allowances and a credit to Accounts Receivable