If a company purchases equipment costing $3,600 on credit, the effect on the accounting equation would be:

A.)Liabilities decrease $3,600 and assets increase $3,600.

B.)Equity increases $3,600 and liabilities decrease $3,600.

C.)Assets increase $3,600 and liabilities increase $3,600.

D.)Assets increase $3,600 and liabilities decrease $3,600.

E.)Equity decreases $3,600 and liabilities increase $3,600.