Assuming the company uses the earnings approach for revenue recognition, which of the following best represents the journal entry to record the return of defective goods sold to customers on account and not yet collected? Assume the goods returned will be discarded. O Adebit to Sales Returns and Allowances and a credit to Accounts Receivable, A debit to Merchandise Inventory and a credit to Accounts Payable. O A debit to Sales Returns and Allowances and a credit to Accounts Payable. O Adebit to Merchandise Inventory and a credit to Accounts Receivable