Grayton Industries purchased supplies for $1,200. They paid $700 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for $1,200, a credit to a liability account for $500. Which of the following would be the correct way to complete the recording of the transaction?

a. Credit cash account for $700.

b. Credit the Grayton, Capital account for $500.

c. Debit the Grayton, Capital account for $700.

d. Credit an asset account for $500.