Multiple Choice Question

On Dec. $7,$ Toys R Fun purchased $$1,000$ of merchandise with terms of $\frac{2}{10},\frac{n}{30}.$ If payment is made on December $30,$ demonstrate the required journal entry for

Toys R Fun to record the payment under the perpetual inventory system.

Debit Accounts Payable $$1,000$; credit Cash $$980$; credit Merchandise Inventory $$20.$

Debit Cash $$1,000$; Credit Accounts Payable $$1,000.$

Debit Accounts Payable $$1,000$; credit Cash $$1,000.$