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


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.