Jackson Company uses the perpetual inventory system. It sold merchandise to Jenny. After one month, Jenny returned $250 worth of the merchandise which had a cost of $150. Which of the following journal entries records the cost of merchandise returned?

a.A debit to Cost of Goods Sold of $150, a credit to Merchandise Inventory of $150

b.A debit to Merchandise Inventory of $150, a credit to Cost of Goods Sold of $150

c.A debit to Accounts Receivable of $250, a credit to Merchandise Inventory of $250

d.A debit to Accounts Receivable of $250, a credit to Sales Return and Allowances of $250