With the numbers provided can you please help me elaborate on to achieve the answer given? Thank you.

21. LeokLee Industries has an average accounts payable balance of $720,000. Its average annual cost of goods sold is $8,760,000. It receives terms of 1/10 net 30 from its suppliers. Is LeokLee managing its accounts payables weli? A. Yes, since it, on average, chooses not to take the discount, but pays when payment is due O B. Yes, since it, on average, takes the discount, and pays at the end of the discount period C. Yes, since it on average, stretches payment beyond the due payment date 0 D. No, since it on average, does not take advantage of the discount period and pays wel before payment is due