Faust Company uses the perpetual inventory system. Faust sold goods that cost $5000 for $8000. The sale was made on account. What is the net effect of the sale on the company's financial statements? (Consider the effects of both parts of this event.)
A. Increase total assets by $8000
B. Increase total assets by $5000
C. Increase total assets by $3000
D. Increase total stockholders' equity by $8000
Answer: C
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