On May 1, Ace Bonding Company purchased inventory costing $2,000 on account with terms 2/10, n/30. On May 8, Ace pays for this inventory and records which of the following using a periodic inventory system?

A.	Accounts Payable	2,000
	Cash		2,000
B.	Accounts Payable	1,960
	Purchase Discounts	40
	Cash		2,000
C.	Accounts Payable	2,000
	Purchase Discounts		40
	Cash		1,960
D.	Cash	2,000
	Accounts Payable		2,000

Option A

Option D

Option B

Option C