On March 15,2010,Ryan Company purchased $10,000 of merchandise on credit subject to terms of 2/10,n/30.Ryan Company records its purchases using the gross amount.The periodic inventory system is used.Which of the following journal entries is correct when Ryan Company pays for these goods on March 20,2010?
A) Accounts payable 9,800
Cash 9,800
B) Accounts payable 10,000
Cash 10,000
C) Accounts payable 10,000
Cash 9,800
Purchase discounts 200
D) Accounts payable
Purchase discounts 200
Cash 10,000
Correct Answer:
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