How Would a Sale of $400 of Inventory on Credit

Multiple Choice

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

A) It would increase noncash assets by $400 and increase equity by $400
B) It would decrease noncash assets by $160 and decrease equity by $160
C) It would increase cash by $400 and increase equity by $400
D) Both A and B, above happen simultaneously
E) None of the above