A local contractor buys a new excavator for $20,000 on account. Which of the following is the correct journal entry to record this transaction?

Debit the equipment account for $20,000 and credit the cash account for $20,000.

Debit the equipment account for $20,000 and credit accounts payable account for $20,000

Debt the equipment expense account for $20,000 and credit accounts payable account for $20,000

Debit the accounts receivable account for $20,000 and credit equipment account for $20,000.