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Oswego Clay Pipe Company sold $46,800 of pipe to Southeast Water District #45 on April 12 of the current year with terms 3/15, n/60. Oswego

Oswego Clay Pipe Company sold $46,800 of pipe to Southeast Water District #45 on April 12 of the current year with terms 3/15, n/60. Oswego uses the gross method of accounting for cash discounts.

What entry would Oswego make on June 10, assuming the customer made the correct payment on that date?

Cash 48,204
Accounts receivable 46,800
Interest revenue 1,404

Cash 46,800
Accounts receivable 45,396
Interest revenue 1,404

Cash 46,800
Accounts receivable 46,800

Cash 46,800
Accounts receivable 45,396
Discounts receivable 1,404

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