In March 2020, Your Corporation sold merchandise for which it paid $140,000. Warranty expense is based on cost of goods sold. It estimated that 2.5% of the items sold could be return under warranty. On May 12, 2020, a customer returned a defective item. She was given a replacement from inventory that the company valued at $350. Which of the following answers correctly shows the recording of the May 12, 2020 event? Liabilities Equity Revenues Expenses Cash Flows Net income Assets -OA (350) NA (350) NA (350) (350) Liabilities Equity Revenues Expenses Cash Flows Net income Assets -OA - (350) (350) NA NA NA NA Cash Liabilities Equity Revenues Expenses Net income Flows Assets NA NA (350) 350 350 NA 350 Liabilities Equity Revenues Expenses Cash Flows Net income Assets NA NA 350 (350) NA 350 (350) Liabilities Equity Revenues Expenses Cash Flows Net income Assets NA (350) (350) NA I NA NA NA