Which of the following journal entries is recorded when a firm makes payment for a $500 purchase invoice, assuming that it is taking advantage of a 2% cash discount?

a). Debit accounts payable $500; credit purchases discounts $10; credit cash $490.

b). Debit accounts payable $490; debit purchases discounts $10; credit cash $500.

c). Debit cash $490; debit purchases discounts $10; credit accounts payable $500.

d). Debit cash $500; credit purchases discounts $10; credit accounts payable $490