Grey Company received a bill of $2,800 from the Sloan Advertising Agency. The owner is postponing payment of the bill until a later date. The effect on the basic accounting equation is

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When the bill is postponed, it increases Accounts Payable (a liability) because the company now owes money, and it decreases Owner's Capital (equity) because the expense reduces the owner's equity.

Grey Company Received a Bill of $2,800 from the Sloan