I really need help completing and understanding this problem. Very much appreciated.

A company purchased $3,700 of merchandise on July 5 with terms 2/10, n/30. On July 7, it returned $850 worth of merchandise. On July 12, 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 payment on July 12 is: Multiple Choice Debit Merchandise Inventory $2,850; credit Cash $2,850. Debit Cash $2,850; credit Accounts Payable $2,850. Debit Accounts Payable $2,850; credit Merchandise Inventory $57; credit Cash $2,793. O Debit Accounts Payable $3,700; credit Cash $3,700. Debit Accounts Payable $2,850; credit Cash $2,850