1) Oswego Clay Pipe Company sold $46,000 of pipe to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. Oswego uses the gross method of accounting for cash discounts.

What entry would Oswego make on April 23, assuming the customer made the correct payment on that date?

A)

Cash	45,540
Sales	460
Accounts receivable		46,000

B)

Cash	46,000
Sales discounts	460
Accounts receivable		46,000
Sales discounts forfeited		460

C)

Cash	45,540
Sales discounts	460
Accounts receivable		46,000

D)

Cash	46,000
Accounts receivable		45,540
Sales		460