to record an return inventory that is still in new condition that is granted to a customer, the selling company should record the following journal entry DR Sales Returns and Allowances CR Accounts Receivable DR Inventory CR Cost Goods Sold O DR Sales CR Accounts Receivable DR Inventory CR Cost of Goods Sold DR Sales and Allowances CR Accounts Receivable of Goods Sold CR DR Sales and Allowances CR Accounts Payable DR Inventory CR Cost of Goods Sold