7. Which of the following best represents the change in the accounting equation on January 5th from the following transaction?

On January 5th, Smith Jewelers Co. receives $4,000 in cash for the sale of a watch costing $2,500. The customer is expected to receive the watch on January 8 th

. A. Total assets increase, total liabilities increase, and total owner's equity increases

B. Total assets increase, total liabilities increase, and total owner's equity has no change

C. Total assets increase, total liabilities have no change, and total owner's equity increases

D. Total assets increase, total liabilities have no change, and total owner's equity decreases

E. There is no change to the accounting equation