Mosses Company Sells Merchandise on Account For $\$ 4,000$

mosses Company sells merchandise on account for $\$ 4,000$ to Lane Company with credit terms of $2 / 10, \mathrm{n} / 30$ . Lane Company returns $\$ 600$ of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Moses Company make upon receipt of the check?

A) $\begin{array} { l }\text {Cash. }&3,400 \\ \text {Accounts Receivable }&&3,400 \\\end{array}$

B) $\begin{array} { l }\text { Cash. }&3,332 \\ \text { Sales Returns and Allowances }&668 \\ \text { Accounts Receivable.}&&4,000 \\\end{array}$

C) $\begin{array} { l }\text { Cash }&3,332 \\ \text {Sales Returns and Allowances }& 600\\ \text {Sales Discounts }&68 \\ \text {Accounts Receivable }&4,000 \\\end{array}$

D) $\begin{array} { l }\text { Cash }& 3,920\\ \text {Sales Discounts }& 50\\ \text { Sales Returns and Allowances}&& 600\\ \text { Accounts Receivable}&&3,400 \\\end{array}$