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On March 12, Klein Company sold merchandise in the amount of $11,000 to Babson Company, with credit terms of 2/10,n/30. The cost of the items

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On March 12, Klein Company sold merchandise in the amount of $11,000 to Babson Company, with credit terms of 2/10,n/30. The cost of the items sold is $6,100. Klein uses the perpetua/inventory system and the net method of accounting for sales. On March 15, Babson returns some of the merchandise, which is not defective. The selling price of the returned merchandise is $920 and the cost of the merchandise returned is $510. The entry or entries that Klein must make on March 15 is (are): O 902 902 Sales returns and allowances Accounts receivable Merchandise inventory Cost of goods sold 510 510 920 Accounts receivable Sales returns and allowances 920 920 920 Accounts receivable Sales returns and allowances Cost of goods sold Merchandise inventory 510 510 510 Sales returns and allowances Accounts receivable 510 902 902 Sales returns and allowances Accounts receivable Merchandise inventory Cost of goods sold 500 500

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