The following entry was recorded in the books of Brighty Company.Jan. 12 Inventory
8,000
Accounts Payable-HST, Inc.8,000
Purchased inventory on account.What is the impact of this entry on the accounting equation?

A) an increase in Assets and an increase in Equity
B) an increase in Assets and an increase in Liabilities
C) a decrease in Assets and a decrease in Liabilities.
D) a decrease in Assets and a decrease in Liabilities

Inventory

The complete list of goods and materials that a business holds, either for sale or as part of its supply chain.

Accounting Equation

The fundamental principle of accounting represented as Assets = Liabilities + Shareholder's Equity, ensuring that a company's balance sheet is balanced.

Accounts Payable-HST

Liabilities owed by a business for goods and services that have been received but not yet paid for, specifically relating to Harmonized Sales Tax (HST) payables.