JPLS A company that uses the net method of recording purchases and a perpetual inventory system purchased $1,800 of merchandise on July 5 with terms 2/10,n/30. On July 7, it returned $200 worth of merchandise. On July 28, it paid the full amount due. The correct journal entry to record the payment on July 28 is: O

Debit Merchandise Inventory $1,600; credit Cash $1,600.

O

Debit Cash $1,600; credit Accounts Payable $1,600.

O

Debit Accounts Payable $1,600; credit Merchandise Inventory $32; credit Cash $1,568.

Debit Accounts Payable $1,800; credit Cash $1,800.

O

Debit Accounts Payable $1,568; debit Discounts Lost $32; credit Cash $1,600.