On February 3, Smart Company sold merchandise in the amount of $2.400 to Kennedy Company, with credit terms of 1/10, 1/30. The cost of the items sold is $1,650 Smart uses the perpetual inventory system and the gross method. Kennedy pays the invoice on February 8 and takes the appropriate discount. The Journal entry that Smart makes on February 8 is Credit Account Title Cash Sales discounts Accounts Receivable Debit 2,320 17 2,337 Credit Account Title Cash Accounts Receivable Debit 2,400 2,400 Credit Account Title Cash Accounts Receivable Debit 1,570 1,570 Credit Account Title Cash Accounts Receivable Debit 1,650 1,650 Credit Account Title Cash Sales discounts Accounts Receivable Debit 2,376 24 2,400