On March 1, Crunk Company sold merchandise in the amount of $5,800 to Wells Company, with credit terms of 2/10, n/30. The cost of the items sold is $4.000. Crunk uses the perpetual inventory system and the gross method. On July 5, Wells 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 Crunk must make on July 5 is: Accounts receivable see Sales returns and allowances 500 Sales returns and allowances 350 Accounts receivable 350 Accounts receivable see Sales returns and allowances 500 Cost of goods sold 350 Merchandise inventory 350 Sales returns and allowances see Accounts receivable seo Sales returns and allowances 5000 Accounts receivable 500 Merchandise inventory 350 Cost of goods sold 350