Alfano Industries sold inventory costing $300 for $500 on account. If Alfano Industries operates under the accrual basis, what effect will this transaction have on the owners' equity side of the balance sheet?
A.
None, since the customer to whom the inventory was sold has not yet paid
B.
None, since sales and/or cost of goods sold are income statement accounts
C.
Decrease owners' equity by $300
D.
Increase owners' equity by $200
E.
Increase owners' equity by $800