Current Attempt in Progress

Sheridan Eyes Downtown Diner received a bill of $$540$ from the Pina Wine Advertising Agency. The owner, A$.$ A$.$ Bondy, is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is

a decrease in Cash and an increase in Accounts Payable.

an increase in Accounts Payable and a decrease in Retained Earnings.

a decrease in Cash and an increase in Retained Earnings.

a decrease in Accounts Payable and an increase in Retained Earnings.