Question 25 (4 points) Echo, Inc. sold inventory they purchased for $80 to a customer for $165 on credit. What is the impact of this transaction? Retained earnings increase by $165 Current assets decrease by $80 Current assets increase by $85 Liabilities decrease by $80 Question 26 (4 points) Saved Bolo, Inc. purchases an insurance policy that will last for the next two years by paying cash - which of the following is TRUE with regard to this purchase only? decrease 39