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 15 and Bruce pays the bill on May 20 taking advantage of the terms. Which entry represents the payment? Assume he uses the periodic inventory system. Select one: 

a. Debit Accounts Payable $1,000, Credit Cash $980, Credit Merchandise Inventory $20 

b. Debit Accounts Payable $1,000, Credit Cash $980, Credit Purchase Discount $20 

c. Debit Accounts Payable $980, Credit Cash $980 

d. Credit Accounts Payable $980, Debit Cash $980