12) If a firm purchases $1,000 of inventory on credit, this should have the following change on the balance sheet:

A) a $1,000 decrease in inventory and a $1,000 increase in retained earnings.

B) a $1,000 increase in inventory and a $1,000 decrease in cash.

C) a $1,000 increase in inventory and a $1,000 increase in accounts payable.

D) a $1,000 increase in inventory and a $1,000 increase in equity.