Big Box Retailer is preparing its year-end financial statements. Based on a review of its gift cards outstanding (less an appropriate amount for breakage) it determines that the liability is understated by $45,000. How will the adjusting entry effect the following elements of the accounting equation? Here is an example of the format: $x,xxx increase OR $x,xxx decrease or $0 no change The way to approach this problem is to draw out the accounting equation. Then fill in the boxes. The boxes read left to right. Current assets A Long-term assets A Current liabilities Long-term liabilities Sales, net of allowances Type numbers in this format: $x,xxx Add: increase or decrease or $0 no change On June 30, 2025, Hunt Company sold to Ann Mount merchandise with terms of n/60, f.o.b. shipping point. The goods shipped on June 30. Sales price $10,000 Cost of inventory $6,000 Estimated returns $1,000 Cost of estimated returns $600 June 30 is an important reporting period for Hunt and accordingly, it prepares all adjusting journal entries necessary to present fairly in accordance with GAAP. How are assets affected on the accounting equation? On June 30, 2025, Hunt Company sold to Ann Mount merchandise with terms of n/60, f.o.b. shipping point. The goods shipped on June 30 . On June 30, 2025, Hunt Company sold to Ann Mount merchandise with terms of n/60, f.o.b. shipping point. The goods shipped on June 30 . Sales price $10,000 Cost of inventory $6,000 Estimated returns $1,000 Cost of estimated returns $600 June 30 is an important reporting period for Hunt and accordingly, it prepares all adjusting journal entries necessary to present fairly in accordance with GAAP. How is the accounting equation effected in terms of liabilities? A On June 30, 2025, Hunt Company sold to Ann Mount merchandise with terms of n/60, f.o.b. shipping point. The goods shipped on June 30. Sales price $10,000 On June 30,2025 , Hunt Company sold to Ann Mount merchandise with terms of n/60, f.o.b. shipping point. The goods shipped on June 30 . Sales price $10,000 Cost of inventory $6,000 Estimated returns $1,000 Cost of estimated returns $600 June 30 is an important reporting period for Hunt and accordingly, it prepares all adjusting journal entries necessary to present fairly in accordance with GAAP. How is the accounting equation effected in terms of retained earnings