Monica's Closet received payment in full for goods sold within the discount period on a $500 sales invoice,terms 2/10,n/30.Which entry records this payment?

Question

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This entry correctly reflects the receipt of payment within the discount period, with a debit to Cash for the discounted amount of $490 and a debit to Sales Discount for the discount amount of $10, with a credit to Accounts Receivable for the full sales amount of $500. A and B are incorrect because they do not take into account the discount. C is incorrect because it debits Sales, which has already been credited when the original sale was recorded.

Monica's Closet Received Payment in Full for Goods Sold Within