Mason Company uses the perpetual inventory system.

July $23$: Brill returned merchandise from the July $21$ sale that had cost Mason $$1\mathrm{.}450$ and been sold for $$1\mathrm{.}850.$ The merchandise was restore to inventory.

The journal entry to record this transaction would include:

a credit to Inventory for $$1,450$

a credit to Sales Returns and Allowances for $$1,850$

a credit to Accounts Receivable for $$1,850$

a credit to Accounts Payable for $$1,850$

a debit to Sales for $$1,850$