Cherry Falls Inc. (CFI) sells Red Sox bascball hats. CFI uses the perpetual method of accounting for inventery, and the gross method for recerding sales discounts. CFI propares monthly financial statements. Instead of the previous entry, assume this circumstance. CFI is preparing financial statements at 9/30, The inventory cost at September 30 is $1,200, Beeause the Red Sox are NOT in the World Series, determines that the Net Realizable Value of the hats is only $1,000 What is the effect on net income for this transacsion? Note: if the event would NOT cause recognition of revenue of expense then select A: No eflect on net income. A. No effect on net income B. Decrease net income C. Increase net income