A Company That Uses the Perpetual Inventory System Purchased Inventory

A company that uses the perpetual inventory system purchased inventory for $1,000,000 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) $\begin{array}{l}\begin{array}{|c|c|c|}\hline\text { Cash }&1,000,000\\\hline \text { Accounts Payable } && 1,000,000\\\hline\end{array}\end{array}$
B) $$\begin{array} { | c | r | r | } \hline \text { Accounts Payable } & 1,000,000 & \\\hline \text { Merchandise Inventory } & & 1,000,000 \\\hline\end{array}$$
C) $$\begin{array} { | c | r | r | } \hline \text { Accounts Payable } & 1,000,000 & \\\hline \text { Cash } & & 1,000,000 \\\hline\end{array}$$
D) $$\begin{array} { | c | r | r | } \hline \text { Accounts Payable } & 1,000,000 & \\\hline \text { Merchandise Inventory } & & 100,000 \\\hline \text { Cash } & & 900,000 \\\hline\end{array}$$