During January, Wells Corporation Purchased $100,000 of Inventory; They Paid

Multiple Choice

During January, Wells Corporation purchased $100,000 of inventory; they paid one-fourth in cash, and signed a note for the remaining balance.
This transaction will have the following effect on the accounting equation:

A) Increase Inventory 100,000; decrease Cash 75,000; increase Notes Payable 25,000
B) Increase Inventory 100,000; decrease cash 25,000; increase Accounts Payable 75,000
C) Increase Inventory 100,000; increase Accounts Payable 25,000; decrease Cash 75,000
D) Increase Inventory 100,000; decrease Cash 25,000; increase Notes Payable 75,000