BetterBuy Sells $50,000 of TVs to a Customer

Multiple Choice

BetterBuy sells $50,000 of TVs to a customer.The credit terms state a 2% discount if paid in 7 days and a 1% discount if paid in 8-14 days.The customer pays in 12 days.How would BetterBuy record the customer's payment?

A) Debit Cash for $50,000 and credit Accounts Receivable for $50,000
B) Debit Accounts Receivable for $50,000, credit Cash for $49,500, and credit Inventory for $500
C) Debit Cash for $49,500, credit Accounts Receivable for $50,000, and debit Sales Discounts for $500
D) Debit Cash for $49,500, credit Accounts Receivable for $49,000, and credit Sales Returns & Allowances for $500