Coronado Company uses a perpetual inventory system and made a purchase of merchandise on credit from Sandhill Enterprises on

August $3,$ for $$10000,$ terms $\frac{3}{10},\frac{n}{45}.$ On August $10,$ Coronado makes the appropriate payment to Sandhill. The entry on August $10$

for Coronado Company is

Accounts Payable

$10000$

Cash

$10000$

Accounts Payable

$10000$

Inventory

$300$

Cash

$9700$

Accounts Payable

$10000$

Purchase Returns and Allowances

$300$

Accounts Receivable

$9700$

Accounts Payable

$9700$

Cash