Ramos Company receives a payment on account from Martinez Industries. Based on the original sale of $4,000 using the periodic inventory approach, Ramos honors the 3% cash discount and records the payment. Which of the following is the correct entry for Ramos 32. to record? a. Cash 3,880 120 Sales Discounts 4,000 Merchandise Inventory 4,000 b. Accounts Receivable 3,880 120 Cash Purchase Discounts 3,880 120 c. Cash Sales Discounts 4,000 Accounts Receivable d. Cash 3,880 120 Purchase Discounts Accounts Payable 4,000