Oswego Clay Pipe Company Sold $46,000 of Pipe to Southeast

Oswego Clay Pipe Company sold $46,000 of pipe to Southeast Water District #45 on April 12 of the current year with terms 1/15, n/60. Oswego uses the gross method of accounting for cash discounts. What entry would Oswego make on June 10, assuming the customer made the correct payment on that date?

A) $\begin{array}{|l|r|r|}\hline \text { Cash } & 46,000 & \\\hline \text { Accounts receivable } & & 45,540 \\\hline \text { Discounts receivable } & & 460 \\\hline\end{array}$
B) $\begin{array}{|l|r|r|}\hline \text { Cash } & 46,000 & \\\hline \text { Accounts receivable } & & 45,540 \\\hline \text { Sales discounts forfeited } & & 460 \\\hline\end{array}$
C) $\begin{array}{|c|r|r|}\hline \text { Cash } & 46,000 & \\\hline \text { Accounts receivable } & & 46,000 \\\hline\end{array}$
D) $\begin{array}{|l|r|r|}\hline \text { Cash } & 46,460 & \\\hline \text { Accounts receivable } & & 46,000 \\\hline \text { Sales discounts forfeited } & & 460 \\\hline\end{array}$