Carrie Company Sold Merchandise with an Invoice Price of $1,000 $\begin{array} { l r r } \text { Cash } & 980 & \\\text { Sales Discount } & 20 & \\\quad \text { Accounts receivable } & & 1,000\end{array}$

Multiple Choice

Carrie Company sold merchandise with an invoice price of $1,000 to Underwood,Inc.,with terms of 2/10,n/30.Which of the following is the correct entry to record the payment by Underwood Inc.,within the 10 days if the company uses the periodic inventory system and the gross method to record purchases?

A) $\begin{array} { l r r } \text { Cash } & 980 & \\\text { Sales Discount } & 20 & \\\quad \text { Accounts receivable } & & 1,000\end{array}$
B) $\begin{array} { l r r } \text { Accounts Payable } & 1,000 & \\\quad \text { Cash } & &980 \\\quad \text { Purchases Discounts } && 20\end{array}$
C) Accounts Payable $\quad$$\quad$ 1,000
$\quad$ Cash $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$ 1,000
D) Purchases $\quad$$\quad$ 980
$\quad$ Cash $\quad$$\quad$$\quad$$\quad$ 980