Inventory which originally cost $80\mathrm{.}0$ is sold for $100\mathrm{.}0$ in cash.

Which answer best describes how this transaction would be reflected in the company's balance sheet?

Select one:

Cash increases $20\mathrm{.}0,$ sales increases $100\mathrm{.}0,$ inventory decreases $80\mathrm{.}0$

Inventory decreases $80\mathrm{.}0,$ sales increase $100\mathrm{.}0,$ cash increases $100\mathrm{.}0,$ accounts payable decreases $80\mathrm{.}0$

Retained earnings decreases $80\mathrm{.}0,$ inventory decreases $80\mathrm{.}0,$ retained earnings increases $100\mathrm{.}0,$ accounts receivable increases $100\mathrm{.}0$

Inventory decreases $80\mathrm{.}0,$ cash increases $100\mathrm{.}0,$ retained earnings increases $20\mathrm{.}0$

Clear my choice