1. Assume the gross invoice price is $2,500, the amount of purchase return and allowance is $300, the credit term is 2/10, n/30. If the buyer takes the discount, which one the correct journal entry for buyer?

1. Accounts Payable 2,200

Cash 2,156

Inventory 44

2. Accounts Payable 2,500

Cash 2,450

Inventory 50

3. Account Payable 2,200

Cash 2,200

4. Account Payable 2,500

Inventory 2,500