August 21: Issued credit memorandum No. 12 to Canary Bird Co. defective merchandise, $700, plus 5% GST. Inventory was not returned. What will be the entry to record this transaction? Debit Accounts Receivable, Canary Bird $808.50; Credit Sales Returns and Allowances, $770; Credit GST Payable $38.50 Debit Sales Returns and Allowances, $770. Debit GST Payable $38.50; Credit Accounts Receivable, Canary Bird $808.50 Debit Sales Returns and Allowances, $700, Debit GST Payable, $35; Credit Accounts Receivable, Canary Bird $735 Debit Accounts Receivable, Canary Bird $735; credit Sales Returns and Allowances, $700, credit GST Payable, $35