Sales return

Hi Sir

Can you explain the following question fromBPP revision kit mixed bank 7

In October 2006 Utland sold some goods on sale or return terms for $2,500. Their cost to Utland was
$1,500. The transaction has been treated as a credit sale in Utland’s financial statements for the year
ended 31 October 2006. In November 2006 the customer accepted half of the goods and returned the
other half in good condition.
What adjustments, if any, should be made to the financial statements?

A. Sales and receivables should be reduced by $2,500, and closing inventory increased by $1,500.

B. Sales and receivables should be reduced by $1,250, and closing inventory increased by $750.

C. Sales and receivables should be reduced by $2,500, with no adjustment to closing inventory.

D. No adjustment is necessary.

The correct answer is option A.

but I get option B as the answer.

if a credit customer return half of the goods, receivables will decrease by 1250.
and inventory will increase by 750 know because the cost of the inventory is 1500.