Joe Company Sold Merchandise at an Invoice Price of $1,000 $\begin{array} { l l r r } & \text { Purchases } & 1,000 & \\& \text { Cash } & & 1,000 \\\end{array}$

Joe Company sold merchandise at an invoice price of $1,000 to Gibbs, Inc., with terms of 2/10, n/30. Which of the following is the correct entry to record the purchase by Gibbs if the company uses the periodic inventory system and the gross method to record purchases?
a)
$\begin{array} { l l r r } & \text { Purchases } & 1,000 & \\& \text { Cash } & & 1,000 \\\end{array}$
b)
$\begin{array} { l l r r } & \text { Inventory } & 1,000 & \\ & \text { Trade Payables } & &1,000 \\\end{array}$
c)
$\begin{array} { l l r r } & \text { Purchases } & 980 & \\ & \text { Trade Payables } & & 980 \\\end{array}$
d )
$\begin{array} { l l r r } \text { Purchases } & 1,000 & 1,000 \\\text { Trade Payables } & & \\\end{array}$

A) Choice A
B) Choice B
C) Choice C
D) Choice D