Timer Notes Evaluate educk In January, X Company purchased some equipment with $100,000 that it borrowed from a local bank. The accountant recorded the transaction as an increase in Inventories and an Increase in Accounts Payable. As a result, on the January balance sheet, Iriventories were overstated Retained Earnings was overstated Total liabilities were understated. Cash was understated. Total assets were understated. Accounts Payable was understated