Smith Corporation Purchased $68,000 of Merchandise on Credit $\begin{array}{lrr} \text {Merchandise Inventory } &68,000\\ \text {Accounts Payable } &&68,000\\\end{array}$

Smith Corporation purchased $68,000 of merchandise on credit. The company uses the perpetual method of recording inventory purchases. What would be the correct journal entry to record the purchase?

A) $\begin{array}{lrr} \text {Merchandise Inventory } &68,000\\ \text {Accounts Payable } &&68,000\\\end{array}$

B) $\begin{array}{lrr} \text {Purchases } &68,000\\ \text {Accounts Payable } &&68,000\\\end{array}$


C) $\begin{array}{lrr} \text {Merchandise Inventory } &68,000\\ \text { Cash } &&68,000\\\end{array}$


D) $\begin{array}{lrr} \text {Purchases } &68,000\\ \text { Interest Payable } &&68,000\\\end{array}$