Help Save & Exit Sub Gomez Company collected $22,200 on September 1, Year 1 from a customer for services to be provided over a one-year period beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would it report as cash flows from operating activities for Year 1? Multiple Choice Revenue of $22,200: Cash flow from operating activities of $22,200 Revenue of $0, Cosh flow from operating activities of $22,200 Revenue of $7400; Cash flow from operating activities of $22.200 Multiple Choice Revenue of $22,200; Cash flow from operating activities of $22,200 Revenue of $0; Cash flow from operating activities of $22,200 Revenue of $7,400; Cash flow from operating activities of $22,200 Revenue of $7,400; Cash flow from operating activities of $7,400 Assume the perpetual inventory method is used. The company purchased $13,900 of merchandise on account under terms 2/10, n/30. The company returned $3,400 of merchandise to the supplier before payment was made. The liability was paid within the discount period. All of the merchandise purchased was sold for $21,800 cash. What effect will the return of merchandise to the supplier have on the accounting equation? Multiple Choice Assets and stockholders' equity are decreased by $3,400, Assets and liabilities are decreased by $3,332. Multiple Choice Assets and stockholders' equity are decreased by $3,400, Assets and liabilities are decreased by $3,332. Assets and liabilities are decreased by $3,400. None. It is an asset exchange transaction. Faust Company uses the perpetual inventory method. Faust sold goods that cost $5,300 for $8,600. If the sale was made on account, the net effect of the sale will Multiple Choice increase total assets by $3.300. increase total assets by $8,600 Increase total stockholders' equity by 58,600. Multiple Choice increase total assets by $3,300. increase total assets by $8,600. increase total stockholders' equity by $8,600. increase total assets by $5,300,