On June 15, a retailer purchases merchandise on account from a supplier for $2,000 terms 3/10, n/30. On June 18, the retailer returns merchandise purchased for $600 for a reduction in the amount owing. On June 22, the retailer pays their account. Under a perpetual inventory system the journal entry to record the payment includes:

a. $1,400 will be debited to Accounts Payable, $1,358 will be credited to Cash and $42 will be credited to Inventory.

b. $1,358 will be credited to Cash, $1,400 will be debited to Accounts Payable and $42 will be credited to Discounts.

c. $1,358 will be credited to Cash, $1,358 will be debited to Accounts Payable.

d. $1,400 will be credited to Cash, $1,358 will be debited to Accounts Payable, and $42 will be debited to Inventory.