7 Help Save & Exit Submit On February 3, Smart Company sold merchandise in the amount of $4,800 to Kennedy Company, with credit terms of 110, n/30. The cost of the nems sold is $3,310. 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: 2 Multiple Choice Account Title Cash Debit 4,900 Credit Accounts Receivable 4,800 Account Title Debit Credit Cash 3.230 Accounts Receivable 3,230 Account Title Debit Credis Cash 4,752 Sales discounts 40 Accounts Receivable 4,800 Account Title Debit Credit Cash 3,310 Accounts Receivable 3,310