Piper Company Sells Merchandise on Account for $1,500 to Morton

Piper Company sells merchandise on account for $1,500 to Morton Company with credit terms of 2/10, n/30. Morton Company returns $500 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Piper Company make upon receipt of the check? $\begin{array}{lrr} \text{ a. Cash } ............................................................. & 1,000 & \\\quad\quad\text{ Accounts Receivable } ................................. & & 1,000 \\\\\text{b. Cash } ............................................................ .. .& 980 & \\\text{Sales Returns and Allowances } .......................... & 520 \\\quad\quad\text { Accounts Receivable. } ................................... & & 1,500\\ \\\text{ c. Cash } ................................................................. & 980 & \\\text{ Sales Returns and Allowances } ............................. & 500 & \\\text{ Sales Discounts } .................................................... & 20 & \\\quad\quad\text{ Accounts Receivable } ....................................... & & 1,500 \\\\\text{ d. Cash } ................................................................. & 1,470 & \\\text{ Sales Discounts} .................................................... & 30 & \\\quad\quad\text{ Sales Returns and Allowances } .......................... & & 500 \\\quad\quad\text{ Accounts Receivable } ....................................... & & 1.000 \\ \end{array}$