Genshin Industries purchased P110,800 of merchandise on February 1, 2021, subject to a trade discount of 10% and with credit terms of 3/15, n/60. The invoice was paid on February 13. Under gross and net method, how much should be recorded as cost of merchandise purchased on February 1, 2021?

a. Gross - 110,800; Net 96,728

b. Gross - 99,720 ; Net - 96,728

c. Gross 107,476; Net 96,728

d. Gross - 110,800 ; Net - 99,720