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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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