In January, X Company purchasd some equipment with $100,000 that it borrowd from a local bank. The accountant rcorded the transaction as an increase in Invntories and an increase in Accounts Payabl. As a rsult, on the January balance sheet, A. Accounts Payabl was understated. B. Cash was understated. C. Total liabilitis were understated. D. Retained Earnings were overstatd. E. Inventories were overstated. F. Total assets were understatd.