Squid Roe, Inc., purchased equipment that cost $20,000 by promising to pay $15,000 next month and paying the remainder in cash. The journal entry to record this transaction includes a ______.
a) Debit to Equipment and Credit to Accounts Payable
b) Debit to Equipment and Credit to Cash
c) Debit to Accounts Payable and Credit to Cash
d) Debit to Cash and Credit to Accounts Receivable
