Cherry Falls Inc. (CFI) sells Red Sox baseball hats. CFI uses theperpetualmethod of accounting for inventory, and the gross method for recording sales discounts. CFI preparesmonthlyfinancial statements. On October 3, CFI receives a payment in full from a customer who purchased $1,000 of hats on September 8, 1/15, n/30. (Hint: Note that the customer paid AFTER the discount period!) What is the effect on net income for this transaction? Note: if the event would NOT cause recogntion of revenue or expense then select A:No effect on net income.

A.	No effect on net income
B.	Decrease net income
C.	Increase net income