Enterprise Downtown Diner received a bill of $$600$ from the Majestic Wine Advertising Agency. The owner, J$.$ C$.$ Brady, 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.

a decrease in Cash and an increase in Retained Earnings.

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

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