On March 12, Klein 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. Klein uses the perpetual inventory system. On March 15, Bason 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:

Group of answer choices

Dr. Cash $7,056; Cr. Accounts Receivable $7,056

Dr. Cash $4,500; Cr. Accounts Receivable $4,500

Dr. Cash $7,644; Dr. Sales Discounts $156; Cr. Accounts Receivable $ 7,800

Dr. Cash $7,056; Dr. Sales Discount $144; Cr. Accounts Receivable $7,200

Dr. Cash $7,800; Cr. Accounts Receivable $ 7,800