The Roy's Downtown Diner Received a Bill of $400 from the Emeril

The Roy's Downtown Diner received a bill of $400 from the Emeril Advertising Agency. The owner, Roy James, is postponing payment of the bill until a later date. The effect on specific items in the basic accounting equation is

A) a decrease in Cash and an increase in Accounts Payable.
B) a decrease in Cash and an increase in R. James, Capital.
C) an increase in Accounts Payable and a decrease in R. James, Capital.
D) a decrease in Accounts Payable and an increase in R. James, Capital.