On February 3, Smart Company sold merchandise in the amount of $4,700 to Truman Company, with credit terms of 2/10, n/30. The cost of the items sold is $3,245. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:

• Cash	3,245
  Accounts receivable		3,245

• Cash	4,700
  Accounts receivable		4,700

• Cash	4,620
  Sales discounts	65
  Accounts receivable		4,685

• Cash	3,165
  Accounts receivable		3,165

• Cash	4,606
  Sales discounts	94
  Accounts receivable		4,700