On June $30,$ Chesapeake Inc. purchased merchandise for $$3,750$ on credit terms $\frac{2}{10},\frac{n}{30}.$

Chesapeake accounts for purchase discounts using the net method and follows a periodic inventory

system. If Chesapeake paid the balance in full on July $25,$ Chesapeake's entry would include a

Select one:

a$.$ Debit to Interest Expense for $$75.$

b$.$ None of these are correct.

c$.$ Debit to Purchases for $$75.$

d$.$ Credit to Inventory for $$75.$

e$.$ Debit to Accounts Payable for $$3,750.$