On July 1 Ferguson Company sold merchandise in the amount of $5,800 to Tracey Company, with credit terms of 2/10, n.30. The cost of the items sold is $4,000. Ferguson uses the perpetual inventory system and the gross method. On July 5, Tracey returns some of the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Ferguson must make on July 5 is (are): Multiple Choice Credit Debit see Account Title Sales Returns and Allowances Accounts Receivable Merchandise Inventory Cost of Goods Sold see 350 350 Credit Account Title Accounts Receivable Sales Returns and Allowances Debit see 500