The correct answer is A. Sales Return Account.
When a customer returns goods, the seller must credit the customer’s account and debit the sales return account. This is because the seller has not actually sold the goods, and so the revenue from the sale must be reversed. The sales return account is a contra-revenue account, which means that it reduces the amount of revenue that is reported on the income statement.
Option B, Customer’s Account, is incorrect because the customer’s account should be credited, not debited. Option C, Purchase Account, is incorrect because the seller has not purchased any goods. Option D, Stock Account, is incorrect because the goods are not being returned to the seller’s inventory.