Situation: Where to inbounds the ball

[u2_i2_9]

Had this situation arise the other night and not sure we got it right.

Team A scores a basket with 3.4 seconds left to tie the game. Team B immediately calls a timeout.

Team B inbounds the ball from the baseline. My partner gets to about click 4 on the count so B1 lobs a baseball pass down the court. The ball travels about 2/3rds down the court and B2 catches the ball in front of his bench with his foot on the out of bounds line. The clock runs to zero and the buzzer sounds.

We decided the clock should have not started since B2 caught the ball out of bounds. We reset the clock to 3.4 seconds, and gave the ball to team A on the sideline in front of B's bench (where B2 caught the ball out of bounds).

Some of my friends say we messed up and should have given the ball to Team A on the baseline under their basket, similar to where the ball would be inbounded for a throw-in violation.

Thoughts on where the ball should be inbounded?