On November 10 of the current year, Flores Mills sold carpet to a customer for $7,600 with credit terms 1/10, n/30. Flores uses the gross method of accounting for sales discounts. What is the correct entry for Flores on December 5, assuming the correct payment was received on that date?

Multiple Choice

• Cash	7,676
  Accounts receivable		7,600
  Sales discounts forfeited		76

• Cash	7,600
  Accounts receivable		7,600

• Cash	7,600
  Accounts receivable		7,524
  Sales discounts revenue		76

• Cash	7,600
  Accounts receivable		7,524
  Interest revenue		76