34. on march 31, 2015, cars, inc. owes preston devices, one of its suppliers, $25,000 for previous purchases. during april 2015, preston sells cars devices with a sales price of $10,000 and a cost to preston of $8,000. during april, cars pays preston $12,000 against the amount owed to preston. what is the effect of these april transactions on preston's balance sheet? cash increased by $12,000; accounts receivable decreased by $2,000; inventory decreased by $8,000; retained earnings increased by $2,000 accounts receivable increased by $2,000; inventory decreased by $8,000; cash increased by $12,000; retained earnings increased by $12,000 cash increased by $12,000; retained earnings decreased by $2,000; inventory decreased by $10,000; accounts receivable decreased by $12,000 cash increased by $2,000; accounts receivable decreased by $2,000; inventory decreased by $8,000; retained earnings decreased by $12,000