A company declared and paid dividends of $1,300. How does this transaction affect the accounting equation?

A.Add $1,300 to Dividends and add $1,300 to Accounts Receivable.

B.Add $1,300 to Revenue and add $1,300 to Cash.

C.Add $1,300 to Dividend Expense and subtract $1,300 from Cash.

D.Subtract $1,300 from Retained Earnings and subtract $1,300 from Cash.