A company purchased $2,400 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned $500 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:

a) Debit Merchandise Inventory $1,900; credit Cash $1,900

b) Debit Accounts Payable $1,900; credit Merchandise Inventory $57; credit Cash $1,843.

c) Debit Accounts Payable $2,400; credit Cash $2,400.

d) Debit Accounts Payable $1,900; credit Cash $1,900.

e) Debit Cash $1,900; credit Accounts Payable $1,900.