ABC Company is a merchandising company and it uses perpetual inventory system. The company engaged in the following transactions during the month of June: June 2 ABC sold $9,000 of merchandise on account. The credit terms were 3/10 n/30. ABC's cost for the merchandise sold was $5,500. June 7 ABC's customer returned $3,000 of the merchandise sold on June 2. ABC's cost for the merchandise returned was $1,750. June 16 ABC received a payment from the customer for the balance of the June 2 transaction. In a journal entry to record the transaction on June 7: Select one: a.Sales Returns & Allowances is debited for $1,750; Accounts Receivable is credited for $1,750, Inventory is debited for $3,000; Cost of Goods Sold is debited for $3,000 b.Sales Returns & Allowances is debited for $1,750; Accounts Receivable is credited for $1,750; Inventory is debited for $3,000; Cost of Goods Sold is credited for $3,000 c.Sales Returns & Allowances is debited for $3,000; Accounts Receivable is credited for $3,000; Inventory is debited for $1,750; Cost of Goods Sold is credited for $1,750 d.Sales Returns & Allowances is debited for $3,000, Accounts Receivable is credited for $3,000, Inventory is credited for $1,750; Cost of Goods Sold is credited for $1,750