Company A sold merchandise with a list price of $4,200 and costing $2,300 on account to Company B. The sale was subject to the following terms: FOB destination, 2/10, n/30. Company A prepays the freight costs of $85 (debit Delivery Expense for the freight costs). Prior to payment for the goods, Company A issues a credit memo for $750 to Company B for merchandise costing $425 that is returned. Company A received payment from Company B within the discount period. Company A uses a perpetual inventory system.

A)Sold the merchandise, recognizing the sale and cost of goods sold

B)Paid the freight charges

C)issued the credit memo

D)received payment from the customer