Inventory which originally cost 50.0 is sold for 70.0 in cash.

Which answer best describes how this transaction would be reflected in the company's balance sheet?

Select one:

Inventory decreases 50.0, cash increases 70.0, retained earnings increases 20.0

Cash increases 20.0, sales increases 70.0, inventory decreases 50.0

Retained earnings decreases 50.0, inventory decreases 50.0, retained earnings increases 70.0, accounts receivable increases 70.0

Inventory decreases 50.0, sales increase 70.0, cash increases 70.0, accounts payable decreases 50.0