On September 12, Ryan Company sold merchandise in the amount of $5,800 to Johnson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Ryan uses the periodic inventory system and the net method of accounting for sales. Johnson pays the invoice on September 18, and takes the appropriate discount. The journal entry that Ryan makes on September 18 is:

• A.
• Cash4,000Accounts receivable4,000
• B.
• Cash5,800Accounts receivable5,800
• C.
• Cash3,920Sales discounts80Accounts receivable4,000
• D.
• Cash5,684Accounts receivable5,684
• E.
• Cash5,684Sales discounts116Accounts receivable5,800