Tidnish Company sells merchandise on account for $2,400 to Upper Cape Company. Upper Cape Company returns $800 (cost $500) of merchandise that was damaged, along with a cheque to settle the account. What entry does the Tidnish Company make upon receipt of the cheque?

which option is correct and why?

Dr - Cash Dr - Sales Returns and Allowance Cr - Accounts Receivable $1568 $832 $2400 Dr - Cash $2400 Cr-Sales Returns and Allowance $800 Cr - Accounts Receivable $1600 Dr - Cash Dr - Sales Returns and Allowance Dr - Inventory Cr - Accounts Receivable Cr - Cost of Goods Sold $1600 $800 $500 $2400 $500 Dr - Cash Cr - Accounts Receivable $1600 $1600