Sassycat, Inc. issued a credit memorandum to Cheshire Co. for $300 of merchandise, with associated cost of goods sold of $125. Sassycat's journal entry to record the sales return would include: Question content area bottom Part 1 A. debit Inventory $300, credit Accounts Receivable - Cheshire $300. B. debit Inventory $125, credit Cost of Goods Sold $125. C. debit Inventory $125, credit Accounts Receivable - Cheshire $125. D. debit Inventory $300, credit Cost of Goods Sold $300.