Which of the Following Does Not Correctly Describe the Effect

Multiple Choice

Which of the following does not correctly describe the effect of a credit card discount?

A) Net sales decrease and gross profit decreases.
B) Net sales decrease and net income decreases.
C) Operating expenses remain the same and net income decreases.
D) Neither operating expenses, nor net income is affecteD.The credit card discount account is a contra-revenue account, which reduces net sales, gross profit, and therefore net income.