Maxie's Game World sold games to a customer on credit for $4,400, terms 1/10, n/30 and the cost of the games was $3,500. When recording the sales transaction in its sales journal, Maxies would enter:

What is the correct answer?

Multiple Choice

• $3,500 in the Accounts Receivable Dr./Sales Cr. column and $4,400 in the Cost of Goods Sold Dr./Inventory Cr.column.

• $4,400 in the Accounts Receivable Dr./Sales Cr. column and $3,500 in the Accounts Payable Dr./Purchases Cr. column.

• $4,400 in the Accounts Receivable Dr./Sales Cr. column and $4,400 in the Cash Cr. column.

• $4,400 in the Accounts Receivable Dr./Sales Cr. column and $3,500 in the Cost of Goods Sold Dr./Inventory Cr. column.

• $3,500 in the Accounts Receivable Dr./Sales Cr. column and $4,400 in the Other Accounts Dr. column.