Walmart purchases $18 million of dish towels from a supplier in Korea on account with a promise to pay the supplier within 45 days. Which one of the following best describes the accounting treatment of this transaction on Walmart's books?

		Walmart increases Accounts Payable by $18 million and reduces Accounts Receivable by $18 miillion.
		Walmart reduces Cash by $18 million and increases Accounts Receivable by $18 million.
		Walmart reduces Cash by $18 million and increases Cost of Goods Sold by $18 million.
		Walmart increases Inventory by $18 million and Accounts Payable by $18 million.