A Business Purchases Equipment by Paying $7,517 in Cash and Issuing

Multiple Choice

A business purchases equipment by paying $7,517 in cash and issuing a note payable of $19,410.Which of the following occurs?

A) Cash is credited for $7,517, Equipment is credited for $26,927, and Notes Payable is debited for $19,410.
B) Cash is credited for $7,517, Equipment is debited for $26,927, and Notes Payable is credited for $19,410.
C) Cash is debited for $7,517, Equipment is debited for $19,410, and Notes Payable is credited for $26,927.
D) Cash is debited for $7,517, Equipment is credited for $19,410, and Notes Payable is debited for $11,893.