On Dec. 7, Toys R Fun purchased $1,000 of merchandise with terms of 2/10,n/30. If payment is made on December 30, demonstrate the required journal entry for Toys R Fun to record the payment under the perpetual inventory system.

Debit Accounts Payable $1,000; credit Cash $1,000.

Debit Cash $1,000; Credit Accounts Payable $1,000.

Debit Accounts Payable $1,000; credit Cash $980; credit Merchandise Inventory $20.