Jacob Co. bought $13,000 worth of inventory on account from Homer Co. on terms 3/10, n/30. Jacob Co. pays the balance on June 10^th, the last day of the discount period.

When Homer Co., the seller, makes journal entry to record the transaction on June 10^th, what is the effect on the accounting equation?

	Increase Cash $13,000 and decrease Accounts Receivable $13,000
	Increase Cash $12,610, decrease Accounts Receivable $13,000, and decrease Revenue $390
	Increase Cash $12,610, decrease Accounts Receivable $13,000, and increase Expense $390
	Increase Cash $12,610, decrease Accounts Receivable $12,610