Taylor Industries Purchased Supplies for £1,000

Taylor Industries purchased supplies for £1,000. They paid £500 in cash and agreed to pay the balance in 30 days. The journal entry to record this transaction would include a debit to an asset account for ₤1,000, a credit to a liability account for ₤500. Which of the following would be the correct way to complete the recording of the transaction?

A) Credit an asset account for ₤500.
B) Credit another liability account for ₤500.
C) Credit the retained earnings account for ₤500.
D) Debit the retained earnings account for ₤500.