Company ABC uses a perpetual inventory system. On 1/15/19, Company ABC buys $34,000 of inventory with terms 3/10, n/30. On 1/17/19, Company ABC returns $10,000 of inventory. On 1/18/19, Company ABC buys an additional $16,000 from the same supplier. If Company ABC settles all of its outstanding A/P with this supplier on 1/22/19, what J/E will it make?

Question 1 options:

	Dr. Accounts Payable 40,000; Cr. Cash 38,800; Cr. Sales Discounts 1,200
	Dr. Accounts Payable 44,000; Cr. Cash 42,680; Cr. Sales Discounts 1,320
	Dr. Accounts Payable 44,000; Cr. Cash 42,680; Cr. Inventory 1,320
	Dr. Accounts Payable 40,000; Cr. Cash 38,800; Cr. Inventory 1,200