On July $2,$ Smith sold $$40,000$ of inventory items on credit with the terms $\frac{1}{10},$ net $30.$ Payment on $$24,000$ sales was received on July $8$ and the remaining payment on $$16,000$ sales was received on July $27.$ Assuming Smith uses the net method of accounting for sales discounts, the entry recorded on July $8$ would include a

debit to Cash of $$23,760,$ Debit to Sales Discounts of $$240$ and Credit to Accounts Receivable of $$24,000$

debit to Cash and credit to Accounts Receivable for $$24,000$

debit to Cash for $$24,000,$ credit to Accounts Receivable for $$23,760$ and credit to Sales Discounts Forfeited for $$240$

debit to Cash and credit to Accounts Receivable for $$23,760$