Barney Corporation reported the following figures for year ending December 31, 2019:

• Gross profit: 538,000
• Cost of goods sold: 453,000
• Net income: 230,000

Barney Corporation accountants must determine which of these activities are credits (as in if you were doing a t-account, would you debit or credit the item)

1. The impact on accounts receivable from a $10 million collection from a customer.
2. The impact on treasury stock from a company repurchasing $32 million in shares.
3. The impact on inventory from a company recognizing $15 million in cost of goods sold expense.
4. The impact on debt from a $15 million principal paydown.

A. 1

B. 2 and 4

C. 2 and 3

D. 1 and 3