On March 15,2010,Ryan Company Purchased $10,000 of Merchandise on Credit $\quad$

Multiple Choice

On March 15,2010,Ryan Company purchased $10,000 of merchandise on credit subject to terms of 2/10,n/30.Ryan Company records its purchases using the gross amount.The periodic inventory system is used.Which of the following journal entries is correct when Ryan Company pays for these goods on March 20,2010?

A) Accounts payable $\quad$ 9,800
$\quad$ Cash $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 9,800
B) Accounts payable $\quad$ 10,000
$\quad$ Cash $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 10,000
C) Accounts payable $\quad$ $\quad$ $\quad$ 10,000
$\quad$ Cash $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 9,800
$\quad$ Purchase discounts $\quad$ $\quad$ $\quad$ 200
D) Accounts payable $\quad 9,800$
Purchase discounts $\quad$ 200
$\quad$ Cash $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ 10,000