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On July 1, Ferguson Company sold merchandise in the amount of $5,800 to Tracey Company, with credit terms of 2/10,n/30. The cost of the items sold is $4,000. Ferguson uses the perpetual inventory system. On July 5, Tracey returns some of the merchandise and Ferguson immediately issues a cash refund. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Ferguson must make on July 5 is: . Accounts Payable Purchase Discount 500 500 Cash 350 Merchandise inventory 350 ob. Cash 350 Merchandise Inventory 350 OC Cash 500 Merchandise Inventory 500 od 500 Accounts Payable Merchandise Inventory 500 Accounts Payable 500 Purchase Discount 500 Cash 350 Merchandise Inventory 350