The Purchase of Office Equipment at a Cost of $2,600

Multiple Choice

The purchase of office equipment at a cost of $2,600 with an immediate down payment of $1,200 and agreement to pay the balance within 60 days is recorded in the accounts by:

A) increasing Office Equipment for $2,600, increasing Accounts Receivable for $1,200, and increasing Accounts Payable for $1,400.
B) increasing Accounts Receivable for $1,400, increasing Cash for $1,200, and decreasing Office Equipment for $2,600.
C) increasing Office Equipment for $2,600, decreasing Cash for $1,200, and increasing Accounts Payable for $1,400.
D) increasing Office Equipment for $2,600, decreasing Cash for $1,200, and decreasing Accounts Receivable for $1,400.