A Company That Uses a Perpetual Inventory System Purchased $1,800

Multiple Choice

A company that uses a perpetual inventory system purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the amount due. The amount of the discount lost by failing to pay within the discount period equals:

A) $32.
B) $36.
C) $4.
D) $40.
E) $200.