Sold goods costing $1,200 for $2,000 on account. after two weeks the customer returned the goods. there is nothing wrong with the goods; the customer just changed his mind, and you have a return policy that allows customers to return their purchases at any time for any reason. - which one of the following is included in the journal entries necessary to record this return? note: you are recording the return; assume that the initial sale was recorded correctly. also, note that the initial sale was not a cash sale; the sale was made on account.
a. credit to sales returns and allowances for $2,000.
b. credit to inventory for $2,000.
c. credit to cost of goods sold for $2,000.
d. debit to sales returns and allowances for $1,200.
e. debit to inventory for $1,200..
f. debit to cost of goods sold for $1,200.