Multiple Choice
JJ Company purchased on account merchandise with a list price of $10,000. Payment terms were 1/15, n/45. If payment occurs before the discount expires, what is the effect of the sales discount on the balance sheet?
A) Decreases accounts receivable
B) Decreases inventory
C) Increases accounts payable
D) Increases cash
Correct Answer:
Verified
Correct Answer:
Verified
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