Sue's Jewelry sold 30 necklaces for $25 each to a credit customer. The invoice included a 6% sales tax and payment terms of 2/10, n/30. In addition, 5 necklaces were returned prior to payment. The entry to record the return would include:

a debit to Sales Returns and Allowances for $125.00.

a debit to Sales Returns and Allowances for $132.50.

a credit to Sales Tax Payable for $7.50.

a debit to Accounts Receivable for $132.50.