Redwing company sold inventory costing

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Reference no: EM13753337

Redwing Company sold inventory costing $500 to a customer on account for $700. Which of the following does not correctly describe the collection of $686 cash when the customer takes advantage of a sales discount?

Gross profit decreases $14.

Accounts receivable decreases $700.

Net sales decrease $14.

Net income is not affected.

Reference no: EM13753337

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