ABC Company offers customers credit terms of 2/10, n/30. ABC Company is located in Ontario where HST is 13%. The invoice subtotal was $1,000.

What is the correct entry to record the payment receipt assuming the customer received the early payment discount?

a. Debit Cash $1,130 | Credit Accounts Receivable $1,000 ; Credit HST Payable $130

b. Debit Cash $1,130 | Credit Accounts Receivable $1,107.40 ; Credit Sales Discount $22.60

c. Debit Cash $1,107.40 ; Debit Sales Discount $22.60 | Credit Accounts Receivable $1,130

d. Debit Cash $980 ; Debit Sales Discount $20 | Credit Accounts Receivable $1,000