2 Ssrmas method. Truman pays the invoice on February 8, and takes the appropriate d On February 3, Smart Company sold merchandise in the amount of $5,800 to Iru or2/10, n/30. The cost of the items sold is $4,000. Smart uses the perpetual ma inventory system and the t gross discount. The journal entry that makes on February 8 is: A) ccounts receivable 4,00 Accounts receivable 4,000 C) 5,68 ales discounts Accounts receivable 5,800 ash Accounts reccivable 5.80 5,80 E) ash Sales discounts ccounts receivable 3,920 80 4,00 25) Cost of goods sold: A) Is the term used for the expense of buying and preparing merchandise for sale. B) Is a term only used by service firms. C) Is another term for merchandise sales. D) Is also called gross margin. E) Is another term for revenue 26) The inventory valuation method that identifies each item in ending inventory with a specific purchase and invoice is the: A) Retail inventory method. B) Weighted average inventory method. C) Specific identification method. D) Last-in, first-out method. E) First-in, first-out method