4. The Richey Company purchased new equipment for $40,400 from Office Supplies, Inc., to be paid in 30 days.

Which of the following is correct?

a. Equipment is increased by

$40,400. Accounts Payable is decreased by $40,400.

b. Equipment is increased by

$40,400. Accounts Payable is increased by $40,400.

c. Equipment is decreased by $40,400. Accounts Payable is increased by $40,400.

d. Equipment is increased by $40,400. Cash is decreased by $40,400.