A Company Purchased $10,000 of Merchandise on January 5 with Terms

Multiple Choice

A company purchased $10,000 of merchandise on January 5 with terms 2/10,n/30.On January 7,it returned $1,200 worth of merchandise.On January 28,it paid the full amount due.Assuming the company uses a perpetual inventory system,and records purchases using the gross method,the correct journal entry to record the payment on January 28 is:

A) Debit Merchandise Inventory $8,800; credit Cash $8,800.
B) Debit Cash $1,600; credit Accounts Payable $1,600.
C) Debit Accounts Payable $10,000; credit Merchandise Inventory $200; credit Cash $9,800
D) Debit Accounts Payable $8,800; credit Cash $8,800.
E) Debit Accounts Payable $8,624; credit Cash $8,624.