D Question 7 2 pts Armstrong Company sold merchandise with a cost of $600 to a customer for $725 on account. The inventory reduction and the associated cost of goods sold were properly recorded. However, Armstrong failed to record the corresponding sales revenue and associated accounts receivable. What effect will the failure to record these entries have on Armstrong's accounting equation? Total assets and total equity will be understated. The accounting equation will not be affected. Total assets and total equity will be overstated. Total assets will be overstated and total equity will be understated