Lynn Corporation Bought $8,000 of Merchandise from Woods Corporation, Terms

Multiple Choice

Lynn Corporation bought $8,000 of merchandise from Woods Corporation, terms 2/10, n/30. The company uses the periodic inventory system and the voucher system. The journal entry to record the payment under the net method after the discount period would be to:

A) debit Vouchers Payable $8,000; credit Cash $8,000.
B) debit Vouchers Payable $8,000; credit Discounts Lost $160; credit Cash $7,840.
C) debit Vouchers Payable $7,840; credit Cash $7,840.
D) debit Vouchers Payable $7,840; debit Discounts Lost $160; credit Cash $8,000.