Block 1 of 1 Time remain 22 of 25 X Company retums merchandise inventory to ABC Co. with the selling price of $500 and the cost of the merchandise returned of $350. The journal entry or entries made by ABC company to record returned goods using the perpetual inventory system is: O Sales returns and allowances 500 Accounts receivable 500 350 Merchandise inventory Cost of goods sold 350 Selestars and allowances 500 Accounts receivable 500 Accounts receivable 500 Seles returns and alowances 500 Accounts receivable 500 Sales retums and alowances 500 350 Cos of goods sold Merchandise inventory 350