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A customer pays for inventory which he purchased from you previously, and has taken the offered discount within the discount period. Which accounts on the

A customer pays for inventory which he purchased from you previously, and has taken the offered discount within the discount period. Which accounts on the seller's (i.e. your) books are affected?

Question 3 options:

a)

Only cash and accounts receivable both decrease

b)

Only sales and accounts receivable both decrease

c)

Sales discounts increases and accounts receivable decreases. No other accounts are affected.

d)

Sales discounts and cash both increase, and accounts receivable decreases

e)

Sales discounts and inventory both increase, and accounts receivable and cash both decrease

f)

Sales discounts increases, and accounts receivable and inventory both decrease

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