Novak Company sold $$84000$ worth of goods on account to Waterway Inc. on June $20.$ Novak marks all goods up $25\%$ on cost$.$ Waterway has $45$ days to return the goods for any reason. On July $1,$ Waterway returns $$7350$ worth of goods. Novak expects to be able to resell the returned goods at a profit.

The journal entries for Novak to record the initial sales on June $20$ included debits to

No entry can be made because the items can be returned.

Inventory for $$84000,$ and Cash for $$67200.$

Accounts Receivable for $$84000,$ and Sales of $$67200.$

Accounts Receivable for $$84000,$ and Cost of Goods Sold for $$67200.$