A company purchased $1,800 of merchandise on July 5 with terms 2/10, n/30. On July 7,…

A company purchased $1,800 of merchandise on July 5 with terms
2/10, n/30. On July 7, it returned $200 worth of merchandise. On
July 28, it paid the full amount due. Assuming the company uses a
perpetual inventory system, and records purchases using the gross
method, The correct journal entry to record the purchase on July 5
is:
A) Debit Merchandise Inventory $1,600; credit Cash $1,600
B) Debit Merchandise Inventory $1,800; Credit Sales Return $200;
Credit Cash $1,600
C) Debit Account Payable $1,800; Credit Merchandise Inventory
$1,800
D) Debit Accounts Payable $1,800; Credit Purchase Returns $200;
Credit Merchandise Inventory $1,600