Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 2/10, net 30, for $400. Pierce prepaid the $40 shipping charge. Which of the following entries does Pierce make to record this sale?

a.Accounts Receivable-Stanton, debit $40; Sales, credit $40

b.Accounts Receivable-Stanton, debit $392; Sales, credit $392, and Accounts Receivable-Stanton, debit $40; Cash, credit $40

c.Accounts Receivable-Stanton, debit $440; Sales, credit $440

d.Accounts Receivable-Stanton, debit $40; Sales, credit $40, and Transportation Out, debit $400; Cash, credit $400