a customer of juice store returned merchandise with a cost of $25 and a selling price of $40. juice store gave the customer a cash refund because the customer had previously paid their account in full. the journal entry to record the cash refund to the customer includes: multiple choice question. a debit to sales returns and allowances and a credit to cash for $40 a debit to sales returns and allowances and a credit to cash for $25 a credit to sales returns and allowances and a debit to cash for $25 a debit to merchandise inventory and a credit to cost of goods sold for $25