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One of Hawk Company's customers returned products that cost Hawk $300, which was sold on account for $450. Which of the following does not correctly

One of Hawk Company's customers returned products that cost Hawk $300, which was sold on account for $450. Which of the following does not correctly describe the effect of the return on the financial statements?

Operating expenses increase $150.

Total current assets decrease $150.

Sales returns and allowances increase $150.

Gross profit decreases $150.

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