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  3. company a received a bill of $600 from company b.

Company A received a bill of $600 from Company B. The owner of Company A...

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Accounting

Company A received a bill of $600 from Company B. The owner of Company A is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is:

a decrease in Accounts Payable and an increase in Retained Earnings.

none of these are correct.

a decrease in Cash and an increase in Accounts Payable.

an increase in Accounts Payable and a decrease in Retained Earnings.

a decrease in Cash and an increase in Retained Earnings.

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