Terry Company Purchased Supplies for $7,000 on Credit on January

Multiple Choice

Terry Company purchased supplies for $7,000 on credit on January 1. On January 15, they made a cash payment of $2,000 to the supplier, and signed a one-year note for the remaining amount to settle the account.
Terry Company's entry on January 15 will include:

A) Decrease to Notes Payable for $5,000
B) Increase to Accounts Payable for $5,000
C) Increase to Notes Payable for $5,000
D) Increase to Cash for $5,000