Surplus Galore uses the gross method of accounting for sales discounts. Selected data from its records for the year ended December 31 was as follows: Debit Credit Sales $800,000 Accounts Receivable $90,000 Allowance for Sales Discounts 1,200 Estimated sales discounts that will be taken in next fiscal year 1,400 Required: Assume that Austin Maxwell pays his $400 receivable on January 3, taking the 2 percent discount to which he is entitled. Journalize the entry to record the transaction. Refer to the Chart of Accounts for exact wording of account titles.