Wildlife Wholesale Supply sold birdseed to a retailer for $1,460, receiving cash at the time of sale. The cost of the birdseed was $970. When recording the collection from the customer, in its cash receipts journal, Wildlife would enter:

What is the correct answer?

Multiple Choice

• $1,460 in the Cash Dr. column and $1,460 in the Accounts Receivable Cr. column.

• $970 in the Cash Dr. column and $970 in the Accounts Receivable Cr. column.

• $1,460 in the Cash Dr. column; $1,460 in the Sales Cr. column; and $970 in the Other Accounts Cr. column.

• $1,460 in the Accounts Receivable Dr. column, $1,460 in the Cash Cr. column; and $970 in the Cost of Goods Sold Dr./Inventory Cr. column.

• $1,460 in the Cash Dr. column; $1,460 in the Sales Cr. column; and $970 in the Cost of Goods Sold Dr./Inventory Cr. column.