Tall&Short Co. uses a perpetual inventory system. The company sells merchandise inventory to Holla Inc. on June 8 for $37,500 on credit, 2/10, n/30, FOB destination point. The cost of the merchandise inventory was $23,500. On June 14 Holla Inc. returned $6,500 of the merchandise inventory because it was the wrong model. The returned merchandise had a cost of $4,700. What is the appropriate entry Tall&Short Co. records for the return? Oa) Dr. Sales returns & allowances 6,500 and Cr. Accounts receivable 6,500 AND Dr. Merchandise inventory 6,500 and Cr. Cost of sales 6,500 Ob) Dr. Sales returns & allowances 6,500 and Cr. Accounts receivable 6,500 AND Dr. Merchandise inventory 4,700 and Cr. Cost of sales 4,700 Oc) Dr. Sales returns & allowances 4,700 and Cr. Accounts receivable 4,700 AND Dr. Merchandise inventory 4,700 and Cr. Cost of sales 4,700 d) Dr. Sales returns & allowances 6,500 and Cr. Accounts receivable 6,500 AND Dr. Cost of sales 4,700 and Cr. Merchandise inventory 4.700 e) Dr. Accounts receivable 6,500 and Cr. Sales returns & allowances 6,500 AND Dr. Merchandise inventory 4.700 and Cr. Cost of sales 4.700