On July 1, Corrao Company Purchased $1600 of Inventory on Account

On July 1, Corrao Company purchased $1600 of inventory on account with credit terms of 2/10, net 30. Corrao Company uses the perpetual inventory system. On July 5, Corrao Company paid the amount due. What journal entry did they prepare on July 5?

A) debit Accounts Receivable for $1600 and credit Cash for $1600
B) debit Accounts Payable for $1600, credit Inventory for $32 and credit Cash for $1568
C) debit Purchase Discount for $32, debit Accounts Payable for $1536 and credit Cash for $1568
D) debit Accounts Payable for $1568 and credit Cash for $1568