A company purchased $3,000 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned $800 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses aperpetualinventory system, and records purchases using thegrossmethod, the correct journal entry to record the payment on July 12 is:

a. Debit Cash $2,200; credit Accounts Payable $2,200.

b. Debit Accounts Payable $2,200; credit Merchandise Inventory $66; credit Cash $2,134

c. Debit Merchandise Inventory $2,200; credit Cash $2,200.

d. Debit Accounts Payable $3,000; credit Cash $3,000.

e. Debit Accounts Payable $2,200; credit Cash $2,200.