On April 1, Pro Company received a cheque from Carter Company for payment of an invoice dated March 24 for $3,000 with credit terms of 2/10 n/30. On March 28, Carter had returned $200 of the merchandise because it was defective.

How would this transaction be recorded in Pro's cash receipts journal?

A

debit Cash

$2,744;

credit Accounts ReceivableCarter Company $2,744

B.

debit Cash $3,000; credit Accounts ReceivableCarter Company $3,000

C.

debit Cash $2,744 and Sales Discounts $56; credit Accounts ReceivableCarter Company $2,800

D.debit Cash $2,800; credit Accounts ReceivableCarter Company