Steritech Co., a furniture wholesaler, sells merchandise to Butler Co. on account, $86,000, terms 2/10, n/30. The cost of the merchandise sold is $51,600. Steritech Co. issues a credit memorandum for $5,000 ($4,900 net of the 2% discount) for merchandise that was damaged in shipment. Butler Co. agreed to keep the damaged merchandise. Illustrate the effects on the accounts and financial statements of Steritech Co. If no account or activity is affected, select "No effect" from the dropdown and leave the corresponding number entry box blank. Enter account decreases, cash outflows, and the cost of merchandise sold as negative amounts. a. The sale, including the cost of the merchandise sold. Balance Sheet = Liabilities + Stockholders' Equity = No Effect + Retained Earnings 34,400 Assets Accounts Receivable + Inventory 86,000 -51,600 Statement of Cash Flows Operating 81,000 Income Statement 86,000 51,600 Sales Cost of goods sold No effect