Wrigley Company had the following journal entry:

Debit Credit

Cash $3,200

Accounts Receivable 1,500

Sales $4,700

From this entry, we can determine that Wrigley:

Made $4,700 of sales, of which $3,200 was collected in cash and $1,500 is still owed to them.

Made $4,700 of sales, of which $3,200 of goods was delivered to the customer and $1,500 of goods is still owed to the customer.

None of these answers are correct.

Purchased $4,700 of goods, of which they paid $3,200 in cash and owe $1,500 to the seller.

Made $4,700 of sales, but can only recognize $3,200 in revenue now and will recognize the remaining $1,500 upon collection.