Question 7 (5 points) Listen Morgan Company uses a perpetual inventory system. On March 2, Morgan Compan sold $800,000 of merchandise on account to Newton Company, terms 2/10, n/30. The cost of the merchandise sold was $600,000. On March 6, Newton Company returned $90,000 of the merchandise purchased on March 2. The cost of the returned merchandise was $50,000. Morgan Company's journal entries to record the return of merchandise include debits to A) Accounts Receivable $50,000 and Cost of Goods sold $90,000 B) Accounts Receivable $90,000 and Cost of Goods sold $50,000 C) Inventory for $50,000 and Sales Returns and Allowances $90,000 D) Inventory for $90,000 and Sales Returns and Allowances $50,000 E) none of the above