On February 3, Smart Company sold merchandise in the amount of $2600 to Truman Company, with credit terms of 2/10, n/30. The cost of the items sold is $1800. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:
A.
| Cash | 1720? | |
| Accounts receivable | 1720? |
B.
| Cash | 2600? | |
| Accounts receivable | 2600? |
C.
| Cash | 2520? | |
| Sales discounts | 36? | |
| Accounts receivable | 2556? |
D.
| Cash | 2548? | |
| Sales discounts | 52? | |
| Accounts receivable | 2600? |
E.
| Cash | 1800? | |
| Accounts receivable | 1800? |
Answer: D
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