EX5#11: CTL Corporation (Wholesaler) uses a perpetual inventory system. CTL received $500 of returned merchandise in good condition (with a cost of $300) that it had sold a week earlier. When it records the return, the journal entry will require: A. Debit to Sales Returns and Allowances $500. B. Debit to Cost of Goods Sold $300. c. Debit to Accounts Receivable $500. D. Credit to Inventory $300. 5-14 4