On April 1,a Hardware Retailer Purchases Inventory on Account for $1,800.Which

On April 1,a hardware retailer purchases inventory on account for $1,800.Which of the following correctly describes the effect of this transaction? Assume a perpetual inventory system is used.

A) Merchandise Inventory decreases by $1,800 and Accounts Receivable decreases by $1,800.
B) Merchandise Inventory decreases by $1,800 and Accounts Receivable increases by $1,800.
C) Merchandise Inventory increases by $1,800 and Accounts Payable decreases by $1,800.
D) Merchandise Inventory increases by $1,800 and Accounts Payable increases by $1,800.

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