On February 3, Smart Company sold merchandise in the amount of $1,800 to Truman Company, with credit terms of 1/10, n/30. The cost of the items sold is $1,240. 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:

Multiple Choice

• Account Title	Debit	Credit
  Cash	1,240
  Accounts Receivable		1,240

• Account Title	Debit	Credit
  Cash	1,800
  Accounts Receivable		1,800

• Account Title	Debit	Credit
  Cash	1,720
  Sales Discounts	12
  Accounts Receivable		1,732

• Account Title	Debit	Credit
  Cash	1,160
  Accounts Receivable		1,160

• Account Title	Debit	Credit
  Cash	1,782
  Sales Discounts	18
  Accounts Receivable		1,800