Mary operates a wholesale business that distributes high quality doll houses. One day, her best customer...

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Mary operates a wholesale business that distributes high quality doll houses. One day, her best customer called to say they had over-ordered and would like to return $500 worth of product that was billed on account. To maintain good relations with this customer, Mary graciously accepted the return. The cost of the product is $300. Which of the following entries correctly records the sales return? Assume Mary uses the perpetual inventory system. Select one: a. Debit Sales Returns and Allowances $500, Credit Accounts Receivable $500 O O b. Debit Sales Returns and Allowances $500, Credit Accounts Receivable $500 and Debit Merchandise Inventory $300, Credit Cost of Goods Sold $300 O c. Debit Sales Revenue $500, Credit Merchandise Inventory $300, Credit Cost of Goods Sold $200 O d. Credit Sales Revenue $500, Debit Accounts Receivable $500 and Credit Merchandise Inventory $300, Debit Cost of Goods Sold $300 Mary operates a wholesale business that distributes high quality doll houses. One day, her best customer called to say they had over-ordered and would like to return $500 worth of product that was billed on account. To maintain good relations with this customer, Mary graciously accepted the return. The cost of the product is $300. Which of the following entries correctly records the sales return? Assume Mary uses the perpetual inventory system. Select one: a. Debit Sales Returns and Allowances $500, Credit Accounts Receivable $500 O O b. Debit Sales Returns and Allowances $500, Credit Accounts Receivable $500 and Debit Merchandise Inventory $300, Credit Cost of Goods Sold $300 O c. Debit Sales Revenue $500, Credit Merchandise Inventory $300, Credit Cost of Goods Sold $200 O d. Credit Sales Revenue $500, Debit Accounts Receivable $500 and Credit Merchandise Inventory $300, Debit Cost of Goods Sold $300