B-Mart Sells $5,000 of Blue Jeans

B-Mart sells $5,000 of blue jeans. The customer later tells B-Mart that $200 of them are defective. The sale of the $5,000 of blue jeans on account has already been recorded. The customer agrees to keep the blue jeans and B-Mart agrees to a $100 allowance. B-Mart will:

A) debit Accounts Payable for $200 and credit Inventory for $200.
B) debit Inventory for $200 and credit Accounts Payable for $200.
C) debit Accounts Payable for $200 and credit Sales Returns & Allowances for $200.
D) debit Sales Returns & Allowances for $200 and credit Accounts Receivable for $200.