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4) On March 15, 2019, Ryan Company purchased $10,000 of merchandise on credit subject to terms of 2/10, n/30. Ryan Company records its purchases using

4) On March 15, 2019, 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. Which of the following journal entries is correct when Ryan Company pays for these goods on March 20, 2019?

A)

Accounts payable 9,800
Cash 9,800

B)

Accounts payable 10,000
Cash 10,000

C)

Accounts payable 10,000
Cash 9,800
Inventory 200

D)

Accounts payable 9,800
Inventory 200
Cash 10,000

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