Please refer to the spreadsheet image. Which of the following is true? Listed below are the transactions that took place for J&E Clinic during 20X1. NOTE: INCREASES IN EXPENSES ARE RECORDED AS POSITIVE NUMBERS AND DECREASES IN EXPENSES ARE RECORDED AS NEGATIVE NUMBERS A. Purchased equipment for $40,000. Paid 20% in cash, with the remainder on credit. B. Provided service for which $7,500 was billed of which $2,500 was received in cash. c. On December 1, paid cash in advance for a 1 year's contract with a consulting physician - $24,000 D. Bought $15,000 worth of supplies on credit. Cash A/R Supplies Prepaid Assets Ltd Expenses as to Use PPE Accum Dep Payables Restricted Revenues, Net Assets Gains, os Expenses A (8,000) 40,000 32.000 B 2.500 5,000 7,500 (24,000) 24,000 D 15.000 15,000 Transaction A is incorrectly recorded it should be PP&E, not supplies); Transaction B is correctly recorded; and Transaction C is correctly recorded Transaction A is incorrectly recorded (it should be PP&E, not supplies); Transaction B is correctly recorded; and Transaction C is incorrectly recorded (it should be pre-paid expenses, not assets limited to use) Transaction A is correctly recorded; Transaction B is correctly recorded; and Transaction C is incorrectly recorded (it should be pre-paid expenses, not assets limited to use) Transaction A is incorrectly recorded (it should be PP&E, not supplies); Transaction B is incorrectly recorded (it should be 7500 in accounts payable, not split between cash and accounts receivable); and Transaction Cis correctly recorded