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. Which of the following shows how the sales return will affect the company's financial statements? | Cash A. NA NA + + + Balance Sheet Assets AR + Inv. (1,000) + NA NA + (700) E = Liab. + NA + = NAI Income Statement Equity N. Sales - Exp. = Net Inc. || (1,000) (1,000) - NA = (1,000) (700) | NAT-1 (700) = 700 L Cash Flow Statement NA NA B. E NA NA NA + (1,000) + + NA + NA 700 NA NA + + (1,000) 700 (1,000) NA - - NA (700) E = (1,000) 700 = NA C. NA NA + + (1,000) + NA + NA 700 NA NA = + (1,000) + 700 (1,000) - NA = 1 NA 11 (700) = (1,000) 700 (1,000) OA NA D. -1 NA NA + + 1,000 NA + + NA 700 NA + = NA + 1,000 700 1,000 NA NA = (700) = 1,000 700T NA NA