Slug, Incorporated purchases equipment for $$1,200,000$ million paying $$180,000$ in cash and issuing $$1,020,000$ in promissory notes. When the journal entry is posted to the related accounts:

$$1,200,000$ will be credited to asset accounts; $$1,200,000$ will be debited to liability accounts.

$$1,200,000$ will be debited to asset accounts; $$1,020,000$ will be credited to liability accounts.

$$1,200,000$ will be credited and $$180,000$ will be debited to asset accounts; $$1,020,000$ will be debited to liability accounts.

$$1,200,000$ will be debited and $$180,000$ will be credited to asset accounts; $$1,020,000$ will be credited to liability accounts.