TB MC Qu. 04-112 (Static) On February... 10 On February 3, Smart Company sold merchandise in the amount of $5,800 to Kennedy Company, with 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. Kennedy pays the invoice on February 8 and takes the appropriate discount. The journal entry that Smart makes on February 8 is: 10 Credit Account Title Cash Accounts Receivable Debit 5,800 1 points 5,800 Skipped Credit Account Title Cash Accounts Receivable Debit 4,000 eBook 4,888 Print Credit References Debit 3.920 Account Title Cash Sales Discounts Accounts Receivable 80 Credit Account Title Cash Accounts Receivable Debit 5,684 5,684 Credit Account Title Cash Sales Discounts Accounts Receivable Debit 5,684 116 5,800