On November 10 of the current year, Flores Mills sold carpet to a customer for $7,400 with credit terms 1/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 17, assuming the correct payment was received on that date?

Multiple Choice

• Cash	7,400
  Sales discounts	74
  Accounts receivable		7,400
  Sales		74

• Cash	7,326
  Sales	74
  Accounts receivable		7,400

• Cash	7,326
  Accounts receivable		7,326

• Cash	7,326
  Sales discounts	74
  Accounts receivable		7,400