Lucy Van Pelt Company sold merchandise in the amount of $11,600 to Charlie Brown Company on February 1, with credit terms of 2/10, n/30. The cost of the items sold is $4,800. On February 4, Charlie Brown Company returns some of the merchandise, which was restored into Lucy Van Pelt’s inventory. The selling price and the cost of the returned merchandise are $1,600 and $1,000, respectively.

The entries that Lucy Van Pelt Company must make on February 4 will not include: (assume both companies use the perpetual inventory method)

A. Debit to Inventory for $1,000

B. Credit to Cost of Goods Sold for $1,600

C. Credit to Accounts Receivable for $1,600

D. Debit to Sales Returns and Allowances for $1,600