i understand the first half and i got my numbers for that but second half is throwing me off

8 On March 12, Klein Company 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 and the gross method of accounting for sales. On March 15, Babson returns some of the merchandise, which is not defective. 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 (are Multiple Choice 11 Sales returns and allowances 600 Accounts receivable 600 Sales returns and allowances Accounts receivable Merchandise inventory Cost of goods sold 600 600 350 350 Sales returns and allowances Accounts receivable 350 350 ere to search