On April 1,a Hardware Retailer Purchases Inventory on Account for $1500.Which

Multiple Choice

On April 1,a hardware retailer purchases inventory on account for $1500.Which of the following correctly describes the effect of this transaction? Assume a perpetual inventory system is used.

A) Merchandise Inventory decreases by $1500 and Accounts Receivable decreases by $1500.
B) Merchandise Inventory decreases by $1500 and Accounts Receivable increases by $1500.
C) Merchandise Inventory increases by $1500 and Accounts Payable decreases by $1500.
D) Merchandise Inventory increases by $1500 and Accounts Payable increases by $1500.