Kronic Enterprises Sold Inventory Costing $500 for $900 on Account

Kronic Enterprises sold inventory costing $500 for $900 on account.If Kronic Enterprises operates under the accrual basis,what net effect will this transaction have on the owners' equity side of the balance sheet?

A) None,since the customer to whom the inventory was sold has not yet paid
B) None,since sales and/or cost of goods sold are income statement accounts
C) Decrease owners' equity by $1,400
D) Increase owners' equity by $400
E) Increase owners' equity by $1,400