What Is the Journal Entry Required to Record the Ordering

Multiple Choice

What is the journal entry required to record the ordering of North's merchandise?

A) No entry is required.
B)
$\begin{array}{|l|l|l|}\hline & \text { Debit } & \text { Credit } \\\hline \text { Merchandise Inventory } & \text { CDN } \$ 686,700 & \\\hline \text { Accounts Pay able } & & \text { CDN } \$ 686,700 \\\hline\end{array}$
C)
$\begin{array}{|l|l|l|}\hline & \text { Debit } & \text { Credit } \\\hline \text { Merchandise Inventory } & \text { CDN } \$ 697,500 & \\\hline \text { Accounts Pay able } & & \text { CDN } \$ 697,500 \\\hline\end{array}$