On February 3, Smart Company sold merchandise in the amount…
On February 3, Smart Company sold merchandise in the amount of $4,100 to Kennedy Company, with credit terms of 2/10, n/30. The cost of the items sold is $2,830. Smart uses the perpetual inventory system and the gross method. Kennedy pays the invoice on February 8 and takes the appropriate discount. The journal entry that Smart makes on February 8 is: