Your new firm is operating in an all-cash environment without taxes. You sold $1,000 of inventory for three times the amount you paid for it. The accounting entries you would make for this transaction are: Question 2 options:

A. $1000 increase in cash, $1,000 decrease in inventory

B. $2,000 increase in cash

C. $3,000 increase in cash, $1,000 decrease in inventory, $2,000 increase in accounts receivable.

D. $3,000 increase in cash, $1,000 decrease in inventory, $2,000 increase in retained earnings.