McMillian discovered that a cash sale was never recorded in his books (at all). The cash sale of 125,000 was based on inventories that cost 15,100. In terms of the Income Statement (IS) and the Statement of Financial System (SFP), how will this transaction retrospectively affect those statements, when it is properly recorded? 1. Decrease Sales by 125,000 in the IS 2. Increase Cash by 15,100 in the SFP 3. Increase Sales by 125,000 in the IS 4. Increase Cash by 125,000 in the SFP 5. Increase Inventories by 15,100 in the IS 6. Decrease Inventories by 15,100 in the SFP 7. Increase Cost of Goods Sold by 15,100 in the IS 8. Decrease Cost of Goods Sold by 15,100 in the SFP A. Items 3, 4, 6 and 7. B. Items 2, 5 and 4. C. Items 2, 5, 6 and 7. D. Items 1, 5, 7 and 8. E. All of the items. > 7