A Company That Uses the Perpetual Inventory System Purchased Inventory $$\begin{array} { | l | c | c | } \hline \text { Cash } & 1,080,000 & \\\hline \text { Accounts Payable } & & 1,080,000 \\\hline\end{array}$$

Multiple Choice

A company that uses the perpetual inventory system purchased inventory for $1,080,000 on account with terms of 4/7,n/20.Which of the following correctly records the payment made 15 days after the date of invoice?

A) $$\begin{array} { | l | c | c | } \hline \text { Cash } & 1,080,000 & \\\hline \text { Accounts Payable } & & 1,080,000 \\\hline\end{array}$$
B) $$\begin{array} { | c | c | c | } \hline \text { Accounts Payable } & 1,080,000 & \\\hline \text { Merchandise Inventory } & & 1,080,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | c | c | } \hline \text { Accounts Payable } & 1,080,000 & \\\hline \text { Cash } & & 1,080,000 \\\hline\end{array}$$
D) $$\begin{array} { | l | r | r | } \hline \text { Accounts Payable } & 1,080,000 & \\\hline \text { Merchandise Inventory } & & 43,200 \\\hline \text { Cash } & & 1,036,800 \\\hline\end{array}$$