On December 7, Sheridan Company purchased merchandise inventory with an invoice price of $10800 and credit terms of 2/10, n/30 from Singing River Inc. On December 12, Singing River granted a $1840 allowance because some of the goods did not meet product specification. Sheridan paid the account in full on December 16. In the tabular analysis that follows, the transaction to record the allowance granted on December 12 on the purchaser's books is recorded as Assets Liabilities Stockholders' Equity Retained Earnings Cash + Inventory = Accounts Payable + Common Stock + Exp. Rev. Div. a decrease to Inventory $1840, and a decrease to Accounts Payable $1840. an increase to Cash $1803, and a decrease to Inventory $1803. a decrease to Inventory $1840, and a decrease to Cost of Goods Sold $1840. O an increase to Cost of Goods Sold $10584, and an increase to Accounts Payable $10584