On September 12, Ryan Company sold merchandise in the amount of $7,200 to Johnson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,700. Ryan uses the periodic inventory system and the net method of accounting for sales. On September 14, Johnson returns some of the non-defective merchandise, which is restored to inventory. The selling price of the returned merchandise is $640 and the cost of the merchandise returned is $420. The entry or entries that Ryan must make on September 14 is (are):

Multiple Choice

Sales returns and allowances	627
Accounts receivable		627
Merchandise inventory	420
Cost of goods sold		420

Sales returns and allowances	640
Accounts receivable		640

Sales returns and allowances	627
Accounts receivable		627

Sales returns and allowances	627
Accounts receivable		627
Merchandise inventory	412
Cost of goods sold		412

Sales returns and allowances	420
Accounts receivable