On March 12, Fret Company sold merchandise in the amount of $8,600 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,900, Fret uses the perpetual inventory system and the net method of accounting for sales. On March 15, Babson returns some of the merchandise. The selling price of the returned merchandise is $680 and the cost of the merchandise returned is $390. The entry or entries that Fret must make on March 15 is (are) Multiple Choice Account Title Sales Returns and Allowances Accounts Receivable Merchandise Inventory Cost of Goods Sold Debit Credit 666 666 390 390 Account Title Debit Credit Accounts Receivable 680 Sales Returns and Allowances 680 Cost of Goods Sold 390 Merchandise Inventory 390 Account Title Accounts Receivable. Sales Returns and Allowances Debit Credit 680 680 On March 12, Fret Company sold merchandise in the amount of $8,600 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,900, Fret uses the perpetual inventory system and the net method of accounting for sales. On March 15, Babson returns some of the merchandise. The selling price of the returned merchandise is $680 and the cost of the merchandise returned is $390. The entry or entries that Fret must make on March 15 is (are) Multiple Choice Account Title Sales Returns and Allowances Accounts Receivable Merchandise Inventory Cost of Goods Sold Debit Credit 666 666 390 390 Account Title Debit Credit Accounts Receivable 680 Sales Returns and Allowances 680 Cost of Goods Sold 390 Merchandise Inventory 390 Account Title Accounts Receivable. Sales Returns and Allowances Debit Credit 680 680