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 April 23, assuming the customer made the correct payment on that date?
A)

\begin{array}{|l|r|r|}\hline \text { Cash } & 45,540 & \\\hline \text { Sales } & 460 & \\\hline \text { Accounts receivable } & & 46,000 \\\hline\end{array}

\begin{array}{|l|r|r|}\hline \text { Cash } & 46,000 & \\\hline \text { Sales discounts } & 460 & \\\hline \text { Accounts receivable } & & 46,000 \\\hline \text { Sales discounts forfeited } & & 460 \\\hline\end{array}

\begin{array}{|l|r|l|}\hline \text { Cash } & 45,540 & \\\hline \text { Sales discounts } & 460 & \\\hline \text { Accounts receivable } & & 46,000 \\\hline\end{array}

\begin{array}{|l|r|r|}\hline \text { Cash } & 46,000 & \\\hline \text { Accounts receivable } & & 45,540 \\\hline \text { Sales } & & 460 \\\hline\end{array}

Rusty Hardware Makes Only Cash Sales

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