Question $8(1$ point$)$

A company repaid a $$5,000$ loan with $$1,000$ in cash and the remaining through a check. How do the accounts change?

a$)$ Loan Payable $($liability$)$ decreases by $$5,000($debit$),$ Cash $($asset$)$ decreases by $$1,000($credit$),$ and Bank Account $($asset$)$ decreases by $$4,000($credit$).$

b$)$ Loan Payable $($liability$)$ decreases by $$5,000($credit$),$ Cash $($asset$)$ decreases by $$1,000($debit$),$ and Bank Account $($asset$)$ decreases by $$4,000($credit$).$

c$)$ No entry will be passed

d$)$ Both A and $B$ are correct