PLC Corp signed a non-cancellable purchase agreement on February 22nd, 2019. The contract specified that PLC Corp would purchase 1,000 widgets on May 15th, 2020 for $5 per widget. As of December 31st, 2019 the price of widgets fell to $4. How would the journal entry made on December 31st, 2019 affect the basic accounting equation?

A) Assets: Increase, Liabilities: Increase, Stockholders Equity: Decrease

B) Assets: No Effect, Liabilities: Decrease, Stockholders Equity: Increase

C) Assets: Decrease, Liabilities: No Effect, Stockholders Equity: Decrease

D) Assets: No Effect, Liabilities: Increase, Stockholders Equity: Decrease