VU company purchased $1,800 of merchandise on July 5 with terms 2/10,n/30. On July 7, it returned $200 worth of merchandise On July 28, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the merchandise return on July 7 is: Multiple Choice Debit Merchandise Inventory 51600; credit Cash $1600 Debit Merchandise inventory $200 credit Accounts Payable $200 Debit Merchandise Inventory S200 credit Sales Returns $200 On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, 1/30 The cost of the items sold is $4,500. Klein uses the perpetua/inventory system and the gross method of accounting for sales 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 Multiple Choice 7,800 Cash Accounts receivable 7,800 4,500 Cash Accounts receivable 4,500