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 invent and an increase in Accounts Payable. As a result, on the January balance sheet Accounts Payable was understated Total abilities were understated Total assets were understated Retained tamnings was overstated Cash was understated Inventories were overstated Submit AnswerTries 0/99