On July 1.Ferguson Company sold merchandise in the amount of $5,800 to Tracey Company, with credit terms of 2/10, 1/30. 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 bit 500 Credit Account Title Sales Returns and Allowances Accounts Receivable Merchandise Inventory Cost of Goods Sold 500 350 350 Account Title Sales Returns and Allowances Accounts Receivable Debit 500 Credit 500 Account Title Accounts Receivable Sales Returns and Allowances Debit 500 Credit C 500 Debit 509 Credit Account Title Accounts Receivable Sales Returns and Allowances Cost of Goods Sold Merchandise Inventory 500 350 350 Account Title Sales Returns and Allowances Accounts Receivable Debit 350 Credit 350