Seved Help Save & Exit Submit On March 12, Fret Company sold merchandise in the amount of $9,600 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $5,400. Fret uses the perpetual inventory system and the net method of accounting for sales. On March 15, Babson returns some of the merchandise. The selling price of the returned merchandise is $780 and the cost of the merchandise returned is $440. The entry or entries that Fret must make on March 15 is (are): Multiple Choice Account Title Debit Credit Sales Returns and Allowances 764 Accounts Receivable 764 Merchandise Inventory 440 Cost of Goods Sold 440 Account Title Debit Credit Sales Returns and Allowances 764 Accounts Receivable 764 Merchandise Inventory 431 Cost of Goods Sold 431 Account Title Accounts Receivable Sales Returns and Allowances Debit Credit 780 780 Account Title Debit Credit Accounts Receivable 780 Sales Returns and Allowances 780 Cost of Goods Sold 440 Merchandise Inventory 440 Account Title Debit Credit Accounts Receivable 780 Sales Returns and Allowances 780 Cost of Goods Sold 440 Merchandise Inventory 440 Account Title Debit Credit Sales Returns and Allowances 440 Accounts Receivable 440