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 4, CFI pays $300 in shipping expenses on a crate of hats they previously purchased. (In other words, cash goes down $300, so what is the other side of this entry. Really think back to the Darrow example the lecture went over.) 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