Bagley company sales merchandise on account for $5000 to Hoffman company with credit terms of 1/10 n/30.

Question 11 (4 points) Bagley Company sells merchandise on account for $5,000 to Hoffman Company with credit terms of 1/10, n/30. Bagley grants Hoffman a $600 allowance because some of the merchandise did not conform to specifications. Hoffman settle the account within the discount period. What entry does Bagley make upon receipt of the check? a) Cash... 4,400 Accounts Receivable.. 4.400 b) Cash. 4.356 Sales Returns and Allowances..... 644 Accounts Receivable. 5.000