Missouri Company Uses a Perpetual Inventory System

Missouri Company uses a perpetual inventory system.On October 1,Missouri Company sold inventory on account in the amount of $6,500 to Montebello Company,terms 1/10,n/30.The items cost Missouri $4,200.On October 4,Montebello returns some of the inventory.This inventory had a selling price of $500 and a cost of $200.On October 8,Montebello Company paid Missouri Company the amount due on that date. What journal entry (entries) will Missouri Company make on October 4 to record the sales return?

A) Debit Sales Revenue and credit Accounts Receivable for $500;debit Inventory and credit Cost of Goods Sold for $200.
B) Debit Sales Revenue for $200 and credit Accounts Receivable for $200.
C) Debit Sales for $500 and credit Inventory for $500.
D) Debit Accounts Receivable and credit Sales Revenue for $500;debit Cost of Goods Sold and credit Inventory for $200.