Which of the following events would lead to a decrease in a firm's retained earnings, and why?

Payment of $$10,000$ in employee salaries, because salaries are considered a liability, and an increase in liabilities will reduce a firm's retained earnings

Issuance of a $$10,000$ note payable in exchange for cash, because notes payable are considered a liability, and an increase in liabilities will reduce a firm's retained earnings

Payment of $$10,000$ in employee salaries, because salaries are considered an expense, and an increase in expenses will reduce a firm's retained earnings

Issuance of a $$10,000$ note payable in exchange for cash, because notes payable are considered an expense, and an increase in expenses will reduce a firm's retained earnings