On April 1, Townsley Company sold merchandise with a selling price of $10,000 on account to Trout Company. with terms 3/10, n/30. On April 5, Trout Company returned merchandise with a selling price of $1,000. Trout Company paid the amount due on April 9. What journal entry did Townsley Company prepare on April 9 assuming the gross method is used? Debit Cash for $9,000 and credit Accounts Receivable for $9,000. Debit Cash for $8,730, debit Sales Discounts for $270 and credit Accounts Receivable for $9,000. Debit Cash for $9.700, debit Sales Discounts for $300, and credit Accounts Receivable for $10,000. Debit Cash for $8,730, debit Sales Discounts for $270 and credit Sales Revenue for $9,000.