A customer of Juice Store returned merchandise with a cost of

$25

and a selling price of

$40

. Juice Store gave the customer a cash refund because the customer had previously paid their account in full. The journal entry to record the cash refund to the customer includes:\ a debit to Sales Returns and Allowances and a credit to Cash for

$25

\ a debit to.Sales Returns and Allowances and a credit to Cash for

$40

\ a debit to Merchandise Inventory and a credit to Cost of Goods Sold for

$25

\ a credit to Sales Returns and Allowances and a debit to Cash for

$25

A customer of Juice Store returned merchandise with a cost of $25 and a selling price of $40. Juice Store gave the customer a cash refund because the customer had previously paid their account in full. The journal entry to record the cash refund to the customer includes: a debit to Sales Returns and Allowances and a credit to Cash for $25 a debit to Sales Returns and Allowances and a credit to Cash for $40 a debit to Merchandise Inventory and a credit to Cost of Goods Sold for $25 a credit to Sales Returns and Allowances and a debit to Cash for $25