A retailer makes a $100 sale with terms of 2/10, 1/30 on the first of the month. The customer returns $20 of merchandise for credit on account. What journal entry will the seller record when payment is received within the discount period under a perpetual Inventory system? Debit accounts payable $80, credit cash $78.40; credit purchase discounts $1.60 Debit cash $98; debit sales discounts $2; credit accounts receivable $100 Debit cash $78.40, debit purchase discounts $1.60; credit accounts payable $80 Debit cash $78,40, debit sales discounts $1.60; credit accounts receivable $80 Assume that sales revenue are $450,000, sales discounts are $20,000, net income is $35,000, and cost of goods sold is $320,000. How much are gross profit and operating expenses, respectively $120,000 and $85,000 $110,000 and $75,000 $120,000 and $75,000 $110,000 and $85,000