Mack Industries uses the perpetual inventory system. What is the entry to record $250 of returned merchandise, with a cost of $100, from customer Jake Sanders? Debit Sales Returns & Allowances for $250; credit Accounts Receivable for $250. Debit Sales Returns & Allowances for $250; credit Accounts Receivable for $250; debit Purchases for $100; credit Purchase Returns & Allowances for $100. Debit Sales Returns & Allowances for $250; credit Accounts Receivable for $250; debit Merchandise Inventory for $100; credit Cost of Goods Sold for $100 Debit Sales Returns & Allowances for $250; Credit Cash for $100. credit Sales for $150