Merchandise Was Sold on Credit for $30,000, Terms 3/15, N/30

Multiple Choice

Merchandise was sold on credit for $30,000, terms 3/15, n/30. Which of the following journal entry descriptions correctly describes the cash collection?

A) Cash is debited for $25,500 and accounts receivable is credited for $25,500 if the collection is within the discount period.
B) Cash is debited for $29,100, sales discounts is debited for $900, and accounts receivable is credited for $30,000 if the collection is within the discount period.
C) Cash is debited for $30,000, accounts receivable is credited for $29,100, and sales discounts is credited for $900 if the collection is within the discount period.
D) Cash is debited for $29,100 and accounts receivable is credited for $29,100 if the collection is after the discount perioD.When the payment is received within the discount period, a sales discount, $900, is recorded via a debit and cash is debited for the selling price less the discount [$30,000 - $900] and accounts receivable is credited for the selling price, $30,000.