Atkinson Corporation sold merchandise with an invoice price of $3,000 to Zoltan, Inc., with terms of 4/10, n/30. In the books of Zoltan, which of the following is the correct entry to record the payment by Zoltan within the 10 days if the company uses the periodic inventory system and the gross method to record purchases?

Multiple Choice

Dr.	Accounts Payable	3,000
Cr.	Cash		2,880
Cr.	Purchase Discount		120

Dr.	Accounts Payable	2,880
Cr.	Cash		2,880

Dr.	Purchases	2,880
Cr.	Cash		2,880

None of the other alternatives are correct

Dr.	Cash	2,880
Dr.	Sales Discount	120
Cr.	Accounts Receivable		3,000