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On February 3, Smart Company sold merchandise in the amount of $5,800 to Truman Company, with...

On February 3, Smart Company sold merchandise in the amount of $5,800 to Truman 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. Truman pays the invoice on February 18, and takes the appropriate discount. The journal entry that Smart makes on February 18 is:

Multiple Choice

  • Cash 5,800
    Accounts receivable 5,800
  • Cash 4,000
    Accounts receivable 4,000
  • Cash 3,920
    Sales discounts 80
    Accounts receivable 4,000
  • Cash 5,684
    Accounts receivable 5,684
  • Cash 5,684
    Sales discounts 116
    Accounts receivable 5,800
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