which one is the correct answer ?

On March 12, Klein Company sold merchandise in the amount of $8,200 to Babson Company, with credit terms of 2/10,n/30. The cost of the items sold is $4,700. Klein uses the perpetual 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 $640 and the cost of the merchandise returned is $370. The entry or entries that Klein must make on March 15 is (are): Multiple Choice Sales returns and allowances Accounts receivable Merchandise inventory Cost of goods sold 6271 62 Sales returns and allowances Accounts receivable Merchandise inventory Cost of goods sold 363 363 Accounts receivable Sales returns and allowances 627 627 Sales returns and allowances Accounts receivable Merchandise inventory Cost of goods sold 370 370 627 627 Sales returns and allowances Accounts receivable Merchandise inventory Cost of goods sold 363 363 640 Accounts receivable Sales returns and allowances 640 640 Accounts receivable Sales returns and allowances Cost of Goods Sold Merchandise inventory 370 370 370l Sales returns and allowances Accounts receivable 370