The CQ Company uses the periodic method for inventory. All sales and purchases are on credit. How does CQ account for a return of merchandise from a customer?

Select one:

a.

Debit Sales Return, Credit Accounts Receivable

b.

Debit Accounts Receivable, Credit Sales Receivable

c.

Debit Inventory, Credit Cost of Goods Sold

d.

Debit Inventory, Credit Accounts Receivable

e.

Debit Accounts Receivable, Credit Sales Return