On March 12, Klein Company, Inc $$\begin{array} { | l | r | r | } \hline \text { Cash } & 7,800 & \\\hline \text { Accounts receivable } & & 7,800 \\\hline\end{array}$$

On March 12, Klein Company, Inc. sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system. Babson pays the invoice on March 17, and takes the appropriate discount. The journal entry that Klein makes on March 17 is:

A) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 7,800 & \\\hline \text { Accounts receivable } & & 7,800 \\\hline\end{array}$$
B) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 4,500 & \\\hline \text { Accounts receivable } & & 4,500 \\\hline \end{array}$$
C) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 7,644 & \\\hline \text { Sales discounts } & 156 & \\\hline \text { Accounts receivable } & & 7,800 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Cash } & 7,644 & \\\hline \text { Accounts receivable } & & 7,644 \\\hline\end{array}$$
E) $$\begin{array} { | l | r | r | } \hline \hline \text { Cash } & 4,410 & \\\hline \text { Sales discounts } & 90 & \\\hline \text { Accounts receivable } & & 4,500 \\\hline\end{array}$$