On January 10, Bin Company purchased $10,000 of merchandise from Jin Company, terms 2/10, n/30. (The merchandise purchased by Bin on July 10 cost Jin $6,000.) Bin pays the freight cost of $500 on January 11. Goods totaling $1,000 are returned to Jin for credit on January 12. (The goods returned cost Jin $600.) On January 19, Bin pays Jin in full, less the purchase discount. Both companies use a perpetual inventory system.

Prepare the journal entries for the sales return transaction (on January 12) on the book of Jin Company

Group of answer choices

Dr) Sales return and allowance 1,000

Cr) Account receivable 1,000

Dr) Sales revenue 1,000

Cr) Account receivable 1,000

Dr) Inventory 600

Cr) Cost of goods sold 600

Dr) Sales return and allowance 1,000

Cr) Account receivable 1,000

Dr) Inventory 600

Cr) Cost of goods sold 600

Dr) Inventory 1,000

Cr) Accounts receivable 1,000