Hoover Company sold merchandise costing

$3,400

for

$5,800

cash. The merchandise was later returned by the customer for a refund. If the perpetual inventory method is used, what effect will the sales return have on the accounting equation?\ A. Total assets and total stockholders' equity decrease by

$5,800

.\ B. Total assets and total stockholders' equity decrease by

$2,400

.\ C. Total assets decrease by

$5,800

and total stockholders' equity is decreased by

$3,400

.\ D. Total assets and total stockholders' equity increase by

$2,400

.

Hoover Company sold merchandise costing $3,400 for $5,800 cash. The merchandise was later returned by the customer for a refund. If the perpetual inventory method is used, what effect will the sales return have on the accounting equation? A. Total assets and total stockholders' equity decrease by $5,800. B. Total assets and total stockholders' equity decrease by $2,400. C. Total assets decrease by $5,800 and total stockholders' equity is decreased by $3,400. D. Total assets and total stockholders' equity increase by $2,400