On October 1, A-Company sold merchandise in the amount of $6,500 to B-Company, terms 2/10, n/30. The items cost A-Company $4,200. On October 4, B-Company returns some of the merchandise. This merchandise had a selling price of $500 and a cost of $200. On October 8, B-Company paid A-Company the correct amount due.

What is the journal entry that A-Company makes on October 8 to record the receipt of payment from B-Company?

Cash 6,500

Accounts Receivable 6,500

Cash 5,880

Sales Discount 120

Accounts Receivable 6,000

Cash 5,880

Sales Discount 120

Accounts Receivable 5,760

Cash 6,000

Accounts Receivable 6,000