HIJ company offers a six-month warranty for all its products. For the year xxx1 the total sales were $528,000, and the estimate of warranty costs is based on the 2% of sales. During the year, the warranty costs paid were $6,100. (4 points) 16. The sales revenue for the year were registered, how this event will affect the accounting equation (Financial Statements-horizontal)? a) Decrease Cash and decrease Retained Earnings by $528,000 in the Balance Sheet. Increase Warrant Expense and decrease Net Income by $528,000 in the Income Statement. The cash flow will be affected by $528,000 outflow. b) Increase Cash and increase Retained Earnings by $528,000 in the Balance Sheet. Increase Sales Revenue and increase Net Income by $528,000 in the Income Statement. The cash flow will be affected by $528,000 inflow. c) Increase Cash and increase Retained Earnings by $528,000 in the Balance Sheet. Decrease Sales Revenue and decrease Net Income by $528,000 in the Income Statement. The cash flow will be affected by $528,000 outflow. Anointed