On July 13 of the current year, SubZero Company sold materials to a customer for $13,500 with credit terms 2/10, n/30. SubZero uses the gross method of accounting for cash discounts. Prepare the entry SubZero would make on July 27, assuming the correct payment was received on that date. The entry would include:

1. A credit to Sales discounts forfeited for $270.
2. A debit to cash for $13,230
3. A credit to accounts receivable for $13,500
4. A debit to allowance for sales discounts for $270
5. A credit to discount revenue for $270
6. A debit to cash for $13,770
7. A credit to sales discounts for $270
8. None of the above