Question $7$

$1\mathrm{.}63$ pts

How would a sale of $$400$ of inventory on credit affect the balance sheet if the cost of the inventory sold was $$160?$

It would increase cash by $5400$ and increase equity by $$400$

It would increase noncash assets by a net of $$400$ and Increase equity by $400$

It would decrease liabilities by $$160$ and increase equity by a net of $$240$

It would increase noncash assets by a net of $$240$ and increase equity by $$240$