Maxie's Game World Sold Games to a Customer on Credit

Multiple Choice

Maxie's Game World sold games to a customer on credit for $2,600, terms 1/10, n/30 and the cost of the games was $1,700. When recording the collection from the customer made within the discount period, in its cash receipts journal, Maxie's would enter:

A) $2,600 in the Cash Dr. column. $2,600 in the Sales Cr. column, and $1,700 in the Cost of Goods Sold Dr./Inventory Cr. column.
B) $2,574 in the Cash Dr. column, $26 in the Sales Discount Dr. column and $2,600 in the Accounts Receivable Cr. column.
C) $2,574 in the Cash Dr. column and $2,574 in the Accounts Receivable Cr. column.
D) $2,600 in the Cash Dr. column and $2,600 in the Accounts Receivable Cr. column.
E) $2,600 in the Accounts Receivable Dr./Sales Cr. column and $2,600 in the Cash Cr. column.