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Holly uses a perpetual inventory system. Holly sells $3,500 of blue jeans for cash. The customer later brings $420 of blue jeans back to Holly because they are defective. Those blue jeans had a cost of $140. The customer agrees to keep the blue jeans and Holly agrees to a $140 allowance. Which of the following is one of the entries that Holly will use to record the return? Multiple Choice Debit Inventory for $140 and credit Cash for $140. O Debit Cash for 3140 and credit Sales Returns and Allowances for $10. Debit Sales Returns and Allowances for 5140 and credit Cash for $140, Debit Cash for $140 and credit inventory for $140 Which of the following statements concerning a petty cash fund is not correct? Multiple Choice A petty cash fund acts as a control by establishing a limited amount of cash to use for specific types of expenses. To avoid the administrative costs of the use of purchasing cards, or Pcards, many organizations have started using petty cash funds. A petty cash fund is similar to an imprest payroll account in acting as a control of a limited amount of cash. The company's petty cash custodian is responsible for operating the petty cash fund