On 1 January, Ann owed Sam $400. She settled the outstanding amount on 6 January, after deducting a $2\% cash discount. How would Ann record this?
- Aaccount debited: bank $392; discount allowed $8 | account credited: Sam $400
- Baccount debited: bank $392; discount received $8 | account credited: Sam $400
- Caccount debited: Sam $400 | account credited: bank $392; discount allowed $8
- Daccount debited: Sam $400 | account credited: bank $392; discount received $8