mastering inventory

7. VeCo, which uses the perpetual method, records merchandise purchases at gross. On October 3, VeCo buys $42,000 of merchandise on account. Terms are 2/10, n/40. On October 9, VeCo returns goods that cost $10,000. On October 11, VeCo pays $31,360. What entry does VeCo record on October 11? 31,360 a. Accounts Payable Cash 31,360 32,000 b. Accounts Payable Cash Purchase Discounts 31,360 640 32,000 c. Accounts Payable Cash Inventory 31,360 640 31,360 640 d. Accounts Payable Purchase Discounts Cash Inventory 31,360 640