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JDK's merchandising business purchases $200,000 worth of inventory over the course of the quarter. At the end of the quarter, it has sold $175,000

JDK's merchandising business purchases $200,000 worth of inventory over the course of the quarter. At the end of the quarter, it has sold $175,000 of it at a cost of $280,000. a. How will this transaction affect the company's assets? (2 points) b. How will this transaction affect the company's liabilities and equity? (2 points)

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