The purchase of office equipment at a cost of $2,600 with an immediate down payment of $1,200 and agreement to pay the balance within 60 days is recorded in the accounts by:
A) increasing Office Equipment for $2,600, increasing Accounts Receivable for $1,200, and increasing Accounts Payable for $1,400.
B) increasing Accounts Receivable for $1,400, increasing Cash for $1,200, and decreasing Office Equipment for $2,600.
C) increasing Office Equipment for $2,600, decreasing Cash for $1,200, and increasing Accounts Payable for $1,400.
D) increasing Office Equipment for $2,600, decreasing Cash for $1,200, and decreasing Accounts Receivable for $1,400.

Question

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The purchase increases Office Equipment by $2,600. The down payment decreases Cash by $1,200, and the remaining balance increases Accounts Payable by $1,400.

The Purchase of Office Equipment at a Cost of $2,600