A company that uses the net method of recording purchases and a perpetual inventory system purchased $3,200 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $900 worth of merchandise. On July 28, it paid the full amount due. The correct journal entry to record the payment on July 28 is:

a: Debit Merchandise Inventory $2,300; credit Cash $2,300.

b:Debit Cash $2,300; credit Accounts Payable $2,300.

c: Debit Accounts Payable $2,300; credit Merchandise Inventory $46; credit Cash $2,254.

d: Debit Accounts Payable $3,200; credit Cash $3,200.

e: Debit Accounts Payable $2,254; debit Discounts Lost $46; credit Cash $2,300.