Merchandise with an invoice price of $2,000 was purchased on February 3, terms 2/15, n/60. The company uses the gross method to record purchases and a perpetual inventory system. The entry to record a cash payment of this purchase obligation on February 17 is:
A)Debit Accounts Payable $1,960; credit Cash $1,960.
B)Debit Accounts Payable $2,000; credit Cash $2,000.
C)Debit Accounts Payable $1,960; debit Discounts Lost $40; credit Cash $2,000.
D)Debit Accounts Payable $2,000; credit Merchandise Inventory $40; credit Cash $1,960.
E)Debit Accounts Payable $2,000; credit Discounts Lost $40; credit Cash $1,960.

Question

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The Answer of Merchandise with an invoice price of $2,000 was purchased on February 3, terms 2/15, n/60. The company uses the gross method to record purchases and a perpetual inventory system. The entry to record a cash payment of this purchase obligation on February 17 is:
A)Debit Accounts Payable $1,960; credit Cash $1,960.
B)Debit Accounts Payable $2,000; credit Cash $2,000.
C)Debit Accounts Payable $1,960; debit Discounts Lost $40; credit Cash $2,000.
D)Debit Accounts Payable $2,000; credit Merchandise Inventory $40; credit Cash $1,960.
E)Debit Accounts Payable $2,000; credit Discounts Lost $40; credit Cash $1,960.

Merchandise with an Invoice Price of $2,000 Was Purchased on February