A Company Received a Utility Bill for $1000 and Decided

Multiple Choice

A company received a utility bill for $1000 and decided to pay it next month due to a shortage of cash. How does this transaction affect the accounting equation?

A) Add $1000 to Utilities Expense and add $1000 to Cash.
B) Subtract $1000 from Cash and add $1000 to Accounts Payable.
C) Add $1000 to Accounts Receivable and subtract $1000 from Retained Earnings.
D) Add $1000 to Accounts Payable and subtract $1000 from Retained Earnings.