Merchandise is sold on account on January 16, terms 2/10, n/30, and recorded by debiting Accounts Receivable and crediting Sales for $2,000. If payment occurs on January 21, the journal entry would include a credit to:

a. Sales Discounts for $40

b. Accounts Receivable for $1,960

c. Cash for $1,960

d. Accounts Receivable for $2,000