Ghani Company, which operates in Ontario, has received sales returns on account of $500. The company uses a periodic inventory system. The journal entry to record the return is:

a) Sales Returns and Allowances$500

HST Recoverable65

Accounts Receivable$565

b) Sales Returns and Allowances$565

HST Recoverable$65

Accounts Receivable500

c) Sales Returns and Allowances$500

HST Payable65

Accounts Receivable$565

d) Sales Returns and Allowances$565

HST Payable$65

Accounts Receivable500