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: Cash Accounts receivable 1240 1240 Cash 1782 Sales discounts 18 Accounts receivable 1800 Cash 1160 Accounts receivable 1160 Cash 1720 Sales discounts 12 Accounts receivable 1732.00 Cash 1800 Accounts receivable 1800