Oswego Clay Pipe Company sold $46,000 of pipe to Southeast Water District 45 on April 12 of the current year with terms 1/15, n/60. Oswego uses the gross method of accounting for sales discounts.

What entry would Oswego make on April 12?

Multiple Choice

• Account Title	Debit	Credit
  Accounts receivable	46,000
  Sales		46,000

• Account Title	Debit	Credit
  Accounts receivable	46,000
  Sales		45,540
  Sales discounts		460

• Account Title	Debit	Credit
  Accounts receivable	45,540
  Sales		45,540

• Account Title	Debit	Credit
  Accounts receivable	45,540
  Sales discounts	460
  Sales		46,000