Laird Corporation Bought $2,000 of Merchandise from Woods Corporation,terms 2/10,n/30

Multiple Choice

Laird Corporation bought $2,000 of merchandise from Woods Corporation,terms 2/10,n/30.The journal entry to record the payment under the net approach method after the discount period would be to:

A) debit Vouchers Payable $2,000; credit Cash $2,000.
B) debit Vouchers Payable $2,000; credit Discounts Lost $40; credit Cash $1,960.
C) debit Vouchers Payable $1,960; credit Cash $1,960.
D) debit Vouchers Payable $1,960; debit Discounts Lost $40; credit Cash $2,000.