So, on February 3, Smart Company sold merchandise in the amount of $5,800 to Truman

Company, with the credit terms of 2/10, n/30. The cost of the items sold is $4,000. Smart

uses the perpetual inventory system and the gross method table. Truman pays the invoice

on February 8, and takes the appropriate discount. The journal entry that Smart makes on

February 8 is:

a.

Cash 5,684

Sales discounts 116

Accounts receivable 5,800

b.

leash

Accounts receivable

5,6841

5,6841

C. I Cash

Accounts receivable

5,800 I

5,800 I

d.

leash

: Accounts receivable

4,0001

4,000 I

e.

Cash 3,920