A Company Purchased $1,800 of Merchandise on July 5 with Terms

Multiple Choice

A company purchased $1,800 of merchandise on July 5 with terms 2/10,n/30.On July 7,it returned $200 worth of merchandise.On July 28,it paid the full amount due.The correct journal entry to record the payment on July 28 is:

A) Debit Merchandise Inventory $1,600;credit Cash $1,600.
B) Debit Cash $1,600;credit Accounts Payable $1,600.
C) Debit Accounts Payable $1,600;credit Merchandise Inventory $32;credit Cash $1,568.
D) Debit Accounts Payable $1,800;credit Cash $1,800.
E) Debit Accounts Payable $1,600;credit Cash $1,600.