February 8 and takes the appropriate discount. The journal entry that Smart makes on February 8 is: Multiple Choice

On February 3, Smart Company sold merchandise in the amount of $5,800 to Kennedy Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Smart uses the perpetual inventory system and the gross method. Kennedy pays the invoice on February 8 and takes the appropriate discount. The journal entry that Smart makes on February 8 is: Multiple Choice O O Account Title Cash Sales Discounts Accounts Receivable Account Title Cash Accounts Receivable Account Title Cash Accounts Receivable Account Title Cash Accounts Rece ivable Account Title Cash Sales Discounts Accounts Rece ivable Debit 5,684 116 Debit 5,684 Debit 4,000 Debit 5,800 Debit 3,920 80 Credit 5,800 Credit 5,684 Credi 4,000 Credi 5,800 Credit 4,000