ABC Company which provides services to its customers engages in the following transactions during the first month of operations, January.

January 1 Obtains a loan of $50,000. A seven-month, 9% note is signed at the bank.

January 5 Furniture is purchased from a supplier at a cost of $34,200. A down payment of

$10,700 is made, with the remainder due by the end of January.

January 16 Services are provided to customers for the first half of the month, $17,500. Half

of the amount is collected in cash. Half of the amount billed of $8,750 is due by the first

week of February.

January 22 The remaining balance due on the furniture is paid to the supplier.

In the journal entry to record the transaction on January 22:

Select one:

a. Accounts Payable is debited for $34,200; Cash is credited for $34,200

b. Accounts Payable is debited for $23,500; Cash is credited for $23,500

c. Accounts Payable is credited for $34,200; Cash is debited for $34,200

d. Furniture is debited for $34,200; Cash is credited for $34,200