On May 1, Ace Bonding Company Purchased Inventory Costing $2,000 $\quad 2,000$

On May 1, Ace Bonding Company purchased inventory costing $2,000 on account with terms 2/10, n/30. On May 18, Ace pays for this inventory and records which of the following using a perpetual inventory system?

A) Accounts Payable $\quad 2,000$
Cash $\quad 2,000$
B) $\begin{array} { l l } \text { Accounts Payable } & 1,960 \end{array}$
Inventory $\quad 40$
Cash $\quad 2,000$
C) Accounts Payable $\quad 2,000$
Inventory $\quad 40$
Cash $\quad 1,960$
D) Cash $\quad 2,000$
Accounts Payable $\quad 2,000$