A company that uses the net method of recording purchases made a purchase of $1,000 with terms of 2/10, n/30. The entry to record the purchase would be:

a. Debit Merchandise Inventory $980; credit Accounts Payable $980.

b. Debit Merchandise Inventory $980; debit Discounts Lost $20; credit Accounts Payable $1,000.

c. Debit Merchandise Inventory $1,000; credit Discounts Lost $20; credit Accounts Payable $980.

d. Debit Merchandise Inventory $980; credit Cash for $980.

e. Debit Accounts Payable $1,000; credit Discounts Lost $20; credit Cash $980.