Orleans Enterprises Purchased $37,500 of Merchandise on Account,terms 2/10,n/30

Multiple Choice

Orleans Enterprises purchased $37,500 of merchandise on account,terms 2/10,n/30.Assuming Orleans uses the net price method to account for purchase discounts,and it pays for the merchandise on the 30th day after the invoice date,the journal entry to record the payment would include a:

A) credit to Cash for $36,750
B) credit to Inventory for $37,500
C) debit to Accounts Payable for $37,500
D) debit to Purchase Discounts Lost for $750