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Contours, Inc sold merchandise that cost $6,000 to a customer on account for $9,000 under terms 2/10 n/30. Customers returned merchandise that had been sold

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Contours, Inc sold merchandise that cost $6,000 to a customer on account for $9,000 under terms 2/10 n/30. Customers returned merchandise that had been sold for $1,000. This merchandise had original cost Contours $700. The remaining receivables were collected after the discount period had expired. Which of the following shows how recognizing the collection of the receivables win affects a company's financial statements

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