on march 12, fret company sold merchandise in the amount of $7,800 to babson company, with credit terms of 2/10, n/30. the cost of the items sold is $4,500. fret uses the perpetual 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 fret makes on march 20 is:
