Assume the periodic inventory system. Madison Manufacturing gave a 4% trade discount to Tristan Company when it sold inventory for cash that normally sells for $12,000. Which of the following is the journal entry to be made by Madison Manufacturing?
A.
Cash 11,520 Sales 11,520
B.
Cash 11,520 Trade Discount 480 Sales 12,000
C.
Cash 11,520 Trade Discount Payable 480 Sales 12,000
D.
Cash 12,000 Trade Discount 480 Sales 11,520
E.
Cash 12,000 Trade Discount Receivable 480 Sales 11,520