On July 1, Ruth Co. sold inventory costing $9,000 to Diana, Inc. for $12,000, terms 2/10, n/30. Both companies use the net method to account for sales discounts. If Diana pays within the discount period, what journal entry will be recorded by Ruth Company when payment is received?

• Debit Cash for $11,760 and credit Accounts Receivable for $11,760.

• Debit Cash for $11,760, debit Sales Revenue for $240 and credit Accounts Receivable for $12,000.

• Debit Cash for $12,000 and credit Accounts Receivable for $12,000.

• Debit Accounts Payable for $12,000, credit Cash for $11,760 and credit Inventory for $240.