Satoor Inc

Satoor Inc.Satoor Inc. uses a periodic inventory system. It purchased merchandise from Taye Company on July 7, for $15,000. The credit terms were 1/10, n/30. The goods were shipped F.O.B. shipping point on July 7. Satoor Inc. received the merchandise on July 10 and paid the amount due on July 15.
-Refer to the information provided in the figure Satoor Inc.What effect does recording the purchase of merchandise on July 7,have on the buyer's accounting equation?

A) Assets and liabilities increase.
B) Liabilities increase and shareholders' equity decreases.
C) Assets and shareholders' equity increase.
D) Liabilities and shareholders' equity decrease.