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Which of the following statement(s) correctly describes the effect of recording the collection of $20,000 account receivable for which a 4% cash discount was recorded

Which of the following statement(s) correctly describes the effect of recording the collection of $20,000 account receivable for which a 4% cash discount was recorded at the time of collection? I. Net Sales will increase by $20,000. II. Accounts receivable will decrease by $20,000.

Ill. Net income will decrease by $800.

All of the above

Il and III

l and III

I and II

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