A Company Purchased a Truck for $800 on Credit

Multiple Choice

A company purchased a truck for $800 on credit. The journal entry to record this transaction, however, was a debit to 'Truck' for $700 and a credit to 'Account Payable' for $700. What will the effect be on the trial balance?

A) Debits will be $100 less than credits.
B) Debits will be $100 more than credits.
C) The trial balance will still balance.
D) None of the above