Blossom Choice sells natural healing starting kit. Sales price is $10 per starting kit; cost is $5 per starting kit. Based on prior experiences, Blossom Choice estimates product returns are 30% of units sold.

In Nov. 2019, Blossom Choice sells 500 starting kits and receives 35 returned kits. The journal entries to account for the actual return should include:

A: A debit to Sales Returns and Allowances for $350

B: A debit to Cost of Goods Sold for $350

C: A credit to Allowance for Sales Returns and Allowances for $175

D: A credit to Returned Inventory for $175