On February 3, Smart Company sold merchandise in the amount of $4,500 to Truman Company, with credit terms of 1/10, n/30. The cost of the items sold is $3,100. 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

• Cash	3,100
  Accounts receivable		3,100

• Cash	4,500
  Accounts receivable		4,500

• Cash	4,420
  Sales discounts	31
  Accounts receivable		4,451

• Cash	3,020
  Accounts receivable		3,020

• Cash	4,455
  Sales discounts	45
  Accounts receivable		4,500