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JJ CoPurchased on Account Merchandise with a List Price of $10,000

Question 66

Multiple Choice

JJ Co.purchased on account merchandise with a list price of $10,000.Payment terms were 1/15,n/45.If collection 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

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