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10. High Ridge Merchandising Co. sold for $12,000 cash inventory that had cost $10,000. Assuming High Ridge uses the perpetual inventory method, the entries to

10. High Ridge Merchandising Co. sold for $12,000 cash inventory that had cost $10,000. Assuming High Ridge uses the perpetual inventory method, the entries to record this transaction would

a. decrease equity by $10,000.

b. increase assets by $2,000.

c. increase net income by $12,000.

d. increases expenses by $2,000

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