On September 12,Ryan Company Sold Merchandise in the Amount of $5,800

On September 12,Ryan Company sold merchandise in the amount of $5,800 to Johnson Company,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Ryan uses the periodic inventory system and the net method of accounting for sales.On September 14,Johnson returns some of the non-defective merchandise,which is restored to inventory.The selling price of the returned merchandise is $500 and the cost of the merchandise returned is $350.The entry or entries that Ryan must make on September 14 is (are) :

A) $\begin{array}{|l|r|r|}\hline \text { Sales returns and allowances } & 490 & \\\hline \text { Accounts receivable } & & 490 \\\hline \text { Merchandise inventory } & 350 & \\\hline \text { Cost of goods sold } & & 350 \\\hline\end{array}$
B) $\begin{array}{|l|r|r|}\hline \text { Sales retums and allowances } & 500 & \\\hline \text { Accounts receivable } & & 500 \\\hline\end{array}$
C) $\begin{array}{|l|r|r|}\hline \text { Sales retums and allowances } & 490 & \\\hline \text { Accounts receivable } & & 490 \\\hline\end{array}$
D) $\begin{array}{|l|r|r|}\hline \text { Sales returns and allowances } & 490 & \\\hline \text { Accounts receivable } & & 490 \\\hline \text { Merchandise inventory } & 343 & \\\hline \text { Cost of goods sold } & & 343 \\\hline\end{array}$
E) $\begin{array}{|l|r|r|}\hline \text { Sales retums and allowances } & 350 & \\\hline \text { Accounts receivable } & & 350 \\\hline\end{array}$