On March 12, Klein Company, Inc B) C) D) E)

On March 12, Klein Company, Inc. sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system. On March 15, Babson returns some of the merchandise. The selling price of the returned merchandise is $600 and the cost of the merchandise returned is $350. The entry or entries that Klein must make on March 15 is:

A) $$\begin{array} { | l | r | r | } \hline \text { Sales returns and allowances } & 600 & \\\hline \text { Accounts receivable } & & 600 \\\hline \text { Merchandise inventory } & 350 & \\\hline \text { Cost of goods sold } & & 350 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Sales returns and allowances } & 600 & \\\hline \text { Accounts receivable } & & 600 \\\hline\end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Accounts receivable } & 600 & \\\hline \text { Sales returns and allowances } & & 600 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Accounts receivable } & 600 & \\\hline \text { Sales returns and allowances } & & 600 \\\hline \text { Cost of goods sold } & 350 & \\\hline \text { Merchandise inventory } & & 350 \\\hline\end{array}$$
E) $$\begin{array} { | l | r | r | } \hline \text { Sales returns and allowances } & 350 & \\\hline \text { Accounts receivable } & & 350 \\\hline\end{array}$$