On October 1, Robertson Company sold inventory in the amount of $5,800 to Alberta, Inc. with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Robertson uses a periodic inventory system. Alberta pays the invoice on October 8 and takes the appropriate discount. What journal entry will be recorded by Robertson on October 8?
A. Debit Cash and credit Accounts Receivable for $4,000.
B. Debit Cash and credit Accounts Receivable for $5,800.
C. Debit Cash for $3,920, debit Sales Revenue for $80, and credit Accounts Receivable for $4,000.
D. Debit Cash for $5,684, debit Sales Revenue for $116, and credit Accounts Receivable for $5,800.
Answer: D
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