Examine the financial statements effects template below. Then select the answer that best describes the possible transaction.

Balance Sheet

What is the following transaction? Cash Asset -120 +600 Non Cash Assets Liabilities +480

A. Repaying accounts payable of $480, using cash.

B. Selling $600 merchandise on account that has an inventory value of $120.

C. Purchase inventory of $600 paying $120 cash, and putting $480 on account.

D. Purchase $600 of equipment on account

E. None of the above