In January, X Company purchased some equipment with $100,000 that it borrowed from a local bank. The accountant recorded the transaction as an increase in Inventories and an increase in Accounts Payable. As a result, on the January balance sheet, O Inventories were overstated. O Total assets were understated. O Total liabilities were understated. O Cash was understated. Retained Earnings was overstated. O Accounts Payable was understated. Submit Answer Tries 0/99