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Willow Hill Company purchases merchandise inventory for $ 1 3 , 8 0 0 that it then sells on credit at a sales price of

Willow Hill Company purchases merchandise inventory for $13,800 that it then sells on credit at a sales price of $20,700. The amount of cash collected is only $20,400 due to sales discounts, returns, and other adjustments to the selling price. What is the net effect of completing this cycle?

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