On April 2, Melvin sold $30,000 of inventory items on credit with the terms 1/10, n/30. Payment on $18,000 sales was received on April 8 and the remaining payment on $12,000 sales was received on April 27. Assuming Melvin uses the net method of accounting for sales discounts, the entry recorded on April 27 would include a:

A. debit to Cash for $11,880 and credit to Interest Revenue for $11,880.

B. debit to Cash for $11,880 and credit to Accounts Receivable for $11,880.

C. debit to Cash for $12,000 and credit to Interest Revenue for $120.

D. debit to Cash for $12,000 and credit to Accounts Receivable for $120.