On March 12, Fret Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Fret uses the perpetual inventory system and the gross method of accounting for sales. On March 15, Babson returns some of the merchandise. The selling price of the returned merchandise is $600 and the cost of the merchandise returned is $350. The entry or entries that Fret must make on March 15 is (are):

Multiple Choice

Account Title	Debit	Credit
Accounts Receivable	600
Sales Returns and Allowances		600
Cost of Goods Sold	350
Merchandise Inventory		350

Account Title	Debit	Credit
Sales Returns and Allowances	350
Accounts Receivable		350

Account Title	Debit	Credit
Accounts Receivable	600
Sales Returns and Allowances		600

Account Title	Debit	Credit
Sales Returns and Allowances	600
Accounts Receivable		600
Merchandise Inventory	350
Cost of Goods Sold		350

Account Title	Debit	Credit
Sales Returns and Allowances	600
Accounts Receivable		600