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  3. a company purchased $3,000 of merchandise on july

A company purchased $3,000 of merchandise on July 5 with terms 310,n30. On July 7,...

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Accounting

A company purchased $3,000 of merchandise on July 5 with terms 310,n30. On July 7, it returned $800 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:
Multiple Choice
Debit Accounts Payable $2,200; credit Merchandise Inventory $66; credit Cash $2,134.
Debit Merchandise Inventory $2,200; credit Cash $2,200
Debit Accounts Payable $2,200, credit Cash $2,200.
Debit Cash $2,200; credit Accounts Payable $2,200.
Debit Accounts Payable $3,000, credit Cash $3,000
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