mclay1441 mclay1441

21-04-2020
Business

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A company had the following partial list of account balances at year-endWhich of the following statements correctly describes the effect of recording the collection of a $10,000 account receivable for which a 2% sales discount was recorded at the time of collection?

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chaudhrymaimoonah chaudhrymaimoonah

21-04-2020

The $200 sales discount ($10,000 × 2%) reduces net sales and therefore gross profit.

Gross profit will decrease $200

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