Consider the following balance sheet: Cash $70,000 Accounts receivable $30,000 Inventories $50,000 Net fixed assets $350,000 Total assets $500,000 Accounts payable $30,000 Long-term debt $20,000 Common stock $200,000 Retained earnings $250,000 Total liabilities and equity $500,000 Assume that the business uses $10,000 of its cash to pay for supplies that were ordered on credit terms and have already been received and booked (recorded on the balance sheet).

Which of the following statements reflects the resulting balance sheet change?

1)	There is a change to the left-hand side only.

2)	There is a change to the right-hand side only.

3)	The cash account decreases by $10,000, and the retained earnings account decreases by $10,000.

4)	The cash account decreases by $10,000, and the accounts payable account decreases by $10,000.

5)	The cash account decreases by $10,000, and the supplies account increases by $10,000.