A Company That Uses the Net Method of Recording Purchases

Multiple Choice

A company that uses the net method of recording purchases made a purchase of $400 with terms of 2/10,n/30.The entry to record the purchase would be:

A) Debit Merchandise Inventory $392;credit Accounts Payable $392.
B) Debit Merchandise Inventory $400;credit Discounts Lost $8;credit Accounts Payable $392.
C) Debit Merchandise Inventory $392;credit Cash for $392.
D) Debit Merchandise Inventory $392;debit Discounts Lost $8;credit Accounts Payable $400.
E) Debit Accounts Payable $400;credit Discounts Lost $8;credit Cash $392.