On April 2, Kelvin sold $40,000 of inventory items on credit with the terms 1/10, net 30. Payment on $16,000 worth of sales was received on April 8 and the remaining payment on $24,000 worth of sales was received on April 27. Assuming Kelvin uses the net method of accounting for sales discounts, the entry recorded on April 27 should be:

a. debit to Cash and credit to Sales Revenue for $23,760. b. debit to Cash for $23,760 and credit to Accounts Receivable for $23,760.

c. debit to Cash and credit to Accounts Receivable for $24,000.

d. debit to Cash for $24,000, credit to Accounts Receivable for $23,760 and credit to Sales Discounts Forfeited for $240.