On 1/27/2022 Macy's contacted XYZ Corporation, stated that 10,000 of the coats were damage and returned to them. The sale amount return was 6,000 and the cost was 1,500. The entry to record the return of the coats is: A) Debit sale return and allowance for 6,000 and credit account receivable Macy's 6,000, Debit Merchandise Inventory 1,500 and credit Cost of Goods sold for 1,500. B) Debit Account receivable 6,000 and credit Cost of Goods Sold 6,000. C) Debit Cost of Goods sold for 6,000 and Sale return and allowance 6,000, Credit Merchandise Inventory 1,500 and debit sale 1,500 D) None of the above.
