K ABC Company sold merchandise inventory on account to Baxter Enterprises. ABC Company grants a $200 sales allowance for damaged goods to Baxter. The journal entry to record a sales allowance in the books of ABC Company, using the perpetual inventory system would be: OA. Cost of Goods Sold 200 Sales Revenue 200 OB. Sales Revenue 200 Merchandise Inventory 200 OC. Merchandise Inventory 200 Accounts Receivable 200 OD. Sales Returns and Allowances 200 Accounts Receivable 200