Elkins Corporation Uses the Perpetual Inventory Method

Multiple Choice

Elkins Corporation uses the perpetual inventory method. On March 1, it purchased $30,000 of inventory, terms 2/10, n/30. On March 3, Elkins returned goods that cost $3,000. On March 9, Elkins paid the supplier. On March 9, Elkins should credit

A) purchase discounts for $600.
B) inventory for $600.
C) purchase discounts for $540.
D) inventory for $540.