Petkus Company paid Perkins Products, a creditor, on account, $7,500. What are the effects on the fundamental account equation?

Group of answer choices

Assets increase $7,500; liabilities decrease $7,500; owners equity, no effect.

Assets decrease $7,500; liabilities increase $7,500; owners equity, no effect.

Assets decrease $7,500; liabilities, no effect; owners equity decreases $7,500.

Assets increase $7,500; liabilities, no effect; owners equity increases $7,500.

Assets decrease $7,500; liabilities decrease $7,500; owners equity, no effect.