Michelin Jewellers Completed the Following Transactions B) C) $\begin{array} { | c | r | r | } \hline \text { Cash } & 8,000 & \\\hline \text { Accounts receivable } & & 8,000 \\\hline\end{array}$

Multiple Choice

Michelin Jewellers completed the following transactions. Michelin Jewellers uses the perpetual inventory system. On April 2, Michelin sold $9,000 of merchandise to a customer on account with terms of 3/15, n/30. Michelin's cost of the merchandise sold was $5,500. On April 4, the customer reported damaged goods and Michelin granted a $1,000 sales allowance. On April 10, Michelin received payment from the customer. Which of the following entries correctly records the cash receipt on Michelin's books?

A) $\begin{array} { | l | r | r | } \hline \text { Cash } & 7,760 & \\\hline \text { Sales discount } & 240 & \\\hline \text { Accounts receivable } & & 8,000 \\\hline\end{array}$
B) $\begin{array} { | l | r | r | } \hline \text { Accounts receivable } & 8,000 & \\\hline \text { Sales discount } & & 240 \\\hline \text { Cash } & & 7,760 \\\hline\end{array}$
C) $\begin{array} { | c | r | r | } \hline \text { Cash } & 8,000 & \\\hline \text { Accounts receivable } & & 8,000 \\\hline\end{array}$
D) $\begin{array} { | c | r | r | } \hline \text { Cash } & 7,760 & \\\hline \text { Accounts receivable } & & 7,760 \\\hline\end{array}$