On March 12, Fret Company sold merchandise in the amount of $11,600 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $6,400. 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 $980 and the cost of the merchandise returned is $540. The entry or entries that Fret must make on March 15 is (are):

Multiple Choice

Account Title	Debit	Credit
Sales Returns and Allowances	540
Accounts Receivable		540

Account Title	Debit	Credit
Accounts Receivable	980
Sales Returns and Allowances		980

Account Title	Debit	Credit
Sales Returns and Allowances	960
Accounts Receivable		960
Merchandise Inventory	540
Cost of Goods Sold		540

Account Title	Debit	Credit
Accounts Receivable	980
Sales Returns and Allowances		980
Cost of Goods Sold	540
Merchandise Inventory		540

Account Title	Debit	Credit
Sales Returns and Allowances	960
Accounts Receivable		960
Merchandise Inventory	529
Cost of Goods Sold		529