A Company Received a Utility Bill for $2,300 and Decided

Multiple Choice

A company received a utility bill for $2,300 and decided to pay it next month due to a shortage of cash.How does this transaction affect the accounting equation?

A) Add $2,300 to Utilities Expense and add $2,300 to Cash.
B) Subtract $2,300 from Cash and add $2,300 to Accounts Payable.
C) Add $2,300 to Accounts Receivable and subtract $2,300 from Retained Earnings.
D) Add $2,300 to Accounts Payable and subtract $2,300 from Retained Earnings.