Madrid Industries Purchased Supplies for $1200

Madrid Industries purchased supplies for $1200. 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 $1200 a credit to a liability account for $700. 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 Capital account for $500.
D) Debit the Capital account for $500.