Daniel owns a poultry supply company and sells frozen chickens to restaurants. One day, he shipped frozen wings to Pizza Ibiza who practice strict...

Daniel owns a poultry supply company and sells frozen chickens to restaurants. One day, he shipped frozen wings to Pizza Ibiza who practice strict quality controls. Pizza Ibiza came back saying that there was too much ice included in the weight of chicken that he sold. Daniel discovered that there was a problem with the freezer and allowed Pizza Ibiza to deduct 10% off the last bill of $1,000. Which of the following journal entries should Daniel make when Pizza Ibiza settles the bill?

Select one:

a. Dr Cash $900, Dr Sales Returns and Allowances $100, Cr Accounts Receivable $1,000

b. Dr Cash $900, Cr Sales Returns & Allowances $100, Cr Accounts Receivable $900

c. Dr Cash $900, Dr Cost of Goods Sold $100, Cr Accounts Receivable $1,000

d. Cr Cash $900, Cr Revenue $100, Dr Accounts Receivable $1,000