A company received a utility bill for $1,100, which it will pay next month. How does this transaction affect the accounting equation?

Group of answer choices

Add $1,100 to Accounts Receivable and subtract $1,100 from Retained Earnings.

Add $1,100 to Utilities Expense and add $1,100 to Cash.

Add $1,100 to Accounts Payable and subtract $1,100 from Retained Earnings.

Subtract $1,100 from Cash and add $1,100 to Accounts Payable.