Select all that apply

X-Mart uses the perpetual inventory system to account for its merchandise. A customer who purchased merchandise on account requested an allowance on a merchandise purchase due to its poor quality, but he did not return the goods back to X-Mart. Assuming that X-mart gives an allowance of $50 on the merchandise, demonstrate the required journal entry on X-Mart's books to record the allowance by selecting all of the correct actions below. (Check all that apply.)

Multiple select question.

1. Debit Merchandise Inventory $50.

2. Credit Merchandise Inventory $50.

3. Credit Sales Returns and Allowances $50.

4. Debit Sales Returns and Allowances $50.

5. Credit Cost of Goods Sold $50.

6. Debit Cost of Goods Sold $50.

7. Credit Accounts Receivable $50.

8. Credit Cash $50.