On March 12, Klein Company, Inc. 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. Klein uses the perpetual inventory system. On March 15, Babson returns some of the merchandise. The selling price of the merchandise is $600 and the cost of the merchandise returned is $350. Babson pays the invoice on March 20, and takes the appropriate discount. The journal entry that Klein makes on March 20 is: O Cash 7.800 A. Accounts receivable 7,800 O Cash 4,500 B. Accounts receivable 4,500 Cash 7,056 C. Sales discounts 144 Accounts receivable 7,200 O Cash 7,056 D. Accounts receivable 7,056 O Cash 7,644 E. Sales discounts 156 Accounts receivable 7,800