QUESTION 7Shareholders' EquityAssetsLiabilitiesCommon StockRetained Earnings$$On February 20, Wursthaus, Inc., paid for $500 of the sausages purchased on account on January 21. Show the effect of this transaction on the accounting equation below.IF THERE IS NO EFFECT, SELECT "O NO EFFECT."AssetsA. (500) Cost of Goods SoldLiabilitiesB. (500) Inventory Expensev Shareholders' EquityC. 500 InventoryD. (500) CashE. 500 Inventory ExpenseF. 500 CashG. 500 Accounts PayableH.0 No Effect1. (500) Accounts Payable