ABC Company purchases $1,000 merchandise from a supplier with terms 2/10, net 30. The journal entry that ABC would record at the time of payment assuming the payment is made during the discount period is:

A. Debit Accounts Payable, credit cash $1,000

B. Debit Accounts Payable , credit cash $980

C. Debit Inventory, credit accounts Payable $980

D. Debit Accounts Payable for $1,000, credit cash for $980, credit inventory for $20

E. Debit Accounts Payable for $980, Debit Purchase Discounts for $20, credit cash for $1,000