Contours, Inc. sold merchandise that cost $6,000 to a customer on account for $9,000 under terms 2/10, n/30. Customers returned merchandise that had been sold for $1,000. This merchandise had originally cost Contours $700. The remaining receivables were collected after the discount period had expired. Which of the following shows how recognizing the collection of the receivables will affect a company's financial statements? I A. B. Cash 8,000 8,000 7,840 8,000 Balance Sheet Assets + AR + Inv. + (8,000) + NA + (8,000) + NA + (7,840) + NA + (8,000) + NA = Liab. + NA + NA + NA = NA Income Statement Equity N. Sales - Exp. = Net Inc. NA 8,000 - NA = 8,000 NA NA NA = NA NA NA NA NA NA = Na Cash Flow Statement 8,000 OA NA 7,840 OA 8,000 OA D