Pierce Company sold to Stanton Company merchandise on account FOB shipping point, 2/10, net 30, for $20,000. Pierce prepaid the $500 shipping charge. Which of the following entries does Pierce make to record this sale?
Accounts Receivable-Stanton, debit $20,000; Sales, credit $20,000.
Accounts Receivable-Stanton, debit $19,600; Sales, credit $19,600, and
Accounts Receivable-Stanton, debit $500; Cash, credit $500.
Accounts Receivable-Stanton, debit $20,100; Sales, credit $20,100.
Accounts Receivable-Stanton, debit $20,000; Sales, credit $20,000, and
Delivery Expense, debit $500; Cash, credit $500.