The X Co. sold merchandise inventory on account to Y Co. for $2,000; terms 1/10, net 30; free on board shipping point. The cost of the merchandise sold was $1,500. Which of the following entries correctly record the transaction for X Co? The company uses the NET method to record sales discounts and a perpetual inventory system.

A. Dr. Accounts Receivable $1,980; Cr. Sales $1,980

Dr. Cost of Merchandise Sold $1,500; Cr. Merchandise Inventory $1,500

B. Dr. Accounts Receivable $2,000; Cr. Sales $1,980; Cr. Discounts $20

C. Dr. Accounts Receivable $2,020; Cr. Sales $2,020

Dr. Cost of Merchandise Sold $1,520; Cr. Merchandise Inventory $$1,520

D. Dr. Accounts Payable $1,500; Cr. Sales $1,500

E. None of the above entries are correct