Elgin Company Purchased $4,000 of Inventory, Paying Cash for 25

Multiple Choice

Elgin Company purchased $4,000 of inventory, paying cash for 25% of the purchase, with the remainder on account. Elgin Company should:

A) debit Inventory for $4,000, credit Cash for $1,000, and credit Accounts Payable for $3,000
B) debit Cash for $1,000, debit Accounts Payable for $3,000, and credit Inventory for $4,000
C) debit Inventory for $4,000, credit Cash for $1,000, and credit Note Payable for $3,000
D) debit Cash for $1,000, debit Note Payable for $3,000, and credit Inventory for $4,000