Wildlife Wholesale Supply sold birdseed to a retailer for $1,060, receiving cash at the time of sale. The cost of the birdseed was $570. When recording the collection from the customer, in its cash receipts journal, Wildlife would enter:

Multiple Choice

$1,060 in the Cash Dr. column and $1,060 in the Accounts Receivable Cr. column.

$570 in the Cash Dr. column and $570 in the Accounts Receivable Cr. column.

$1,060 in the Cash Dr. column; $1,060 in the Sales Cr. column; and $570 in the Other Accounts Cr. column.

$1,060 in the Accounts Receivable Dr. column, $1,060 in the Cash Cr. column; and $570 in the Cost of Goods Sold Dr./Inventory Cr. column.

$1,060 in the Cash Dr. column; $1,060 in the Sales Cr. column; and $570 in the Cost of Goods Sold Dr./Inventory Cr. column.