Assume that Bonita Company uses the earnings proach for revenue recognition. Bonita Company el merchandise on account for $280 to Widhorse Company Wildhorse Company returns $750 (cost $510) of merchandise that was damaged, along with a cheque to settle the account. What entry does Bonita Company make upon receipt of the cheque? The damaged Inventory is sent to recycling Cash Accounts Receivable 1730 1230 Cash es Returns and Alonces Account Ieceivable 1970 510 2010 2450 O Cash Sales Returns and Allowances Accounts Receivable 750 1230 Cash Sales Returns and Allowances Accounts Receivable 170 750 2450