A Company purchased an inventory for $400 on credit. After 2 months the Company sold all of the inventories for $650 for cash. A Transaction DR. CR. Amount What is the impact on the accounting equation? 1. Purchase Share Capital . Inventory 2. Sell (expense Account payables Interest expenses part) 3. Sell (income interest expenses ! Interest income part) Inventory Account receivables Account payables Retained earnings COGS Revenues CCE Share Capital Intangibles Interest expenses N PPE Interest income