Topic covered in 4.4 Report a proble 5. On March 1, Davis Co. purchased inventory on account for $710 with "2/10,n/30" terms of sale. Davis Co. uses the perpetual approach to account for inventory. On March 7, goods with a cost of $10 were returned to the seller by Davis Co. since they were the wrong color. Davis Co. paid the seller the full remaining amount due on March 30. If Davis Co. records purchases at the gross price, what was the entry to record the payment made on March 30? a. Accounts payable. Cash........ .695.80 695.80 b. Accounts payable.. .700.00 Cash............ 700.00 c. Accounts payable.. 686.00 Cash.. 686.00 Account payable..... -686.00 Od. Purchases discounts lost.... 14.00 Cash........ 700.00 Topic covered in 4.4 Report a