Michelin Jewelers Uses the Perpetual Inventory System B) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 8,000 & \\\hline \text { Accounts Receivable } & & 8,000 \\\hline\end{array}$$

Michelin Jewelers uses the perpetual inventory system. On April 2, Michelin sold goods with a cost of $5,500 for $9,000 with terms of 3/15, n/30. On April 4, the customer reported damaged goods and Michelin granted a $1,000 sales allowance. On April 10, Michelin received the payment for the sale. Give the journal entry that will be recorded on April 10 by Michelin.

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

D) $$\begin{array} { | c | r | r | } \hline \text { Cash } & 8,000 & \\\hline \text { Sales Discount } & & 240 \\\hline \text { Accounts Receivable } & & 7,760 \\\hline\end{array}$$