Neslund Ornamentals Offered a 2% Trade Discount to Parsons Retail $\begin{array}{lcc}\text { Accounts Receivable } & \$ 294,000 & \\\quad \text { Sales } & & \$ 294,000 \\\end{array}$

Neslund Ornamentals offered a 2% trade discount to Parsons Retail Outlet for all purchases over $200,000.Parsons Retail Outlet purchased $300,000 from Neslund Ornamentals on account.Neslund uses the periodic inventory system.Which of the following is the journal entry made by Neslund Ornamentals to recognize the sale and the 2% trade discount?

A) $\begin{array}{lcc}\text { Accounts Receivable } & \$ 294,000 & \\\quad \text { Sales } & & \$ 294,000 \\\end{array}$

B) $\begin{array}{lccc}\text { Accounts Receivable } & \$ 300,000 & \\\quad \text { Sales Returns and Allowances } & & \$ 6,000 \\\quad \text { Sales } & &\$ 294,000 \\\end{array}$

C) $\begin{array}{lccc}\text { Sales Returns and Allowances } & \$ 294,000 & \\\quad \text { Sales } & & \$ 294,000 \\\end{array}$

D) $\begin{array}{lccc}\text { Sales } & \$ 294,000 & \\\quad \text { Accounts Receivable } & & \$ 300,000 \\\quad \text { Trade Discounts } && \$ 6,000 \\\end{array}$

E) $\begin{array}{lccc}\text { Sales } &\$ 294,000 & \\\quad \text { Accounts Receivable } & & \$ 294,000\end{array}$