On July 1,the Corrao Company Purchased $1,000 of Inventory on Account

On July 1,the Corrao Company purchased $1,000 of inventory on account with credit terms of 2/10,net 30.Corrao Company uses the perpetual inventory system.On July 5,the Corrao Company paid the amount due.What journal entry did they prepare on July 5?

A) debit Accounts Receivable for $1,000 and credit Cash for $1,000
B) debit Accounts Payable for $1,000,credit Inventory for $20 and credit Cash for $980
C) debit Purchase Discount for $20,debit Accounts Payable for $960 and credit Cash for $980
D) debit Accounts Payable for $980 and credit Cash for $980