Allan's General Store sold $7,600 worth of merchandise to Bernie's General Store with terms 2/10, n/30, FOB shipping point. Allan's General store paid freight charges of $400 and added it to the amount of the invoice for the merchandise. How should this transaction be recorded on the books of Bernie's General store (net method is used)?

Dr. Purchases $7,600 Cr. Accounts Payable $7,600

Dr. Purchases $7,600, Dr. Transport in $400, Cr. Accounts Payable $$8,000

Dr. Purchases $8,000 Cr. Accounts Payable $7,600 Cr. Gain on sale $400

None of the other alternatives are correct

Dr. Purchases $8,000 Cr. Accounts Payable $8,000