Cherry Falls Inc. (CFI) sells Red Sox baseball hats. CFI uses the perpetual metbod of accounting for isventory, and the gross method for tecording sales discounts CFl prepares monthly financial statements On Oetober 8. CF1 decides that Horatio Hanno's accouns is worthless, and writes it off. Hanno has owed CF1 \$1, 500 for several years. What is the effect oo net income for this transaction? Note: if the event would NOr cause recogntios of revenue or expense then select A : No effect on net income. A. No effect on net income 8. Decrease net income C. Increase net income