Amarillo Company experienced the following events during its first accounting period (1) Purchased $5,000 of inventory on account under terms 1/1030 (2) Returned 1,000 of the inventory purchased in Event 1. (3) Paid the remaining balance in account payable within the discount period for the inventory purchased in Event 1 Based on this information, which of the following shows how the recognition of the cash discount will affect the Company's financial statements. Balance Sheet Income Statement Statement of Cash Flows NA NA (50) NA AssetsLiab ExpNet Inc Equity NA NA NA NA NANA NA NA NA NA NA 40 B.(40(40)+ C. (50)(50)+ NA - NA- 40 40