Galaxy company sold merchandise costing $1,700 for $2,600 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 equity decrease by $900.
b) total assets decrease by $2,600 and total equity is decreased by $1,700.
c) total assets and total equity decrease by $2,600.
d) total assets and total equity increase by $900.