Bruce operates a successful computer store and is flush with cash. He receives a bill from one of his suppliers in the amount of $1,000 with payment terms stated as follows: 2/15, n/30. The bill is dated May 15th and Bruce pays the bill on May 20th. Which entry represents the payment? Assume he uses the periodic inventory system.

Select one:

a. DrAccounts Payable $1,000, Cr Cash $980, Cr Purchase Discount $20

b. DrAccounts Payable $1,000, Cr Cash $980, Cr Inventory $20

c. Dr Accounts Payable $1,000, Cr Cash $1,000

d. Cr Accounts Payable $980, DrCash $980