Johnson, Inc. paid rent expense of $3,500 for the month of October. How is this transaction recorded in the company s accounting records?

Decrease in cash $3,500 and decrease in retained earnings $3,500

Decrease in cash $3,500 and increase in retained earnings $3,500

Increase in cash $3,500 and decrease in retained earnings $3,500

Increase in cash $3,500 and increase in retained earnings $3,500