On November 10 of the current year, Flores Mills sold carpet to a customer for $7,700 with credit terms 2/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on December 5, assuming the correct payment was received on that date?

Multiple Choice:

Cash 7,700 Accounts receivable 7,700

Cash 7,700 Accounts receivable 7,546 Discounts revenue 154

Cash 7,700 Accounts receivable 7,546 Interest revenue 154

Cash 7,854 Accounts receivable 7,700 Interest revenue 154