Stella, Inc

Stella, Inc. purchased 75 telescopes for $25 each from Luna Co. When they unpacked the telescopes, Stella found that 20 of the telescopes were damaged in shipping. Luna offers to take them back, or provide an allowance of $300. How would the journal entries differ if Stella chose to take the allowance instead of return the telescopes?

A) The company would debit the Allowance account instead of Purchase Returns.
B) The company would debit and credit the same accounts, but for a greater amount.
C) The company would debit and credit the same accounts, but for a lesser amount.
D) There would be no difference in journal entries.