LeokLee Industries Has an Average Accounts Payable Balance of $720

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 well?

A) Yes, since it, on average, chooses not to take the discount, but pays when payment is due.
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 payment due date.
D) No, since it, on average, does not take advantage of the discount period and pays well before payment is due.