Which of the Following Does Not Correctly Describe the Effect

question 83

Multiple Choice

Which of the following does not correctly describe the effect of a journal entry involving the recording of a credit card discount?

• A) Net sales decrease and gross profit decreases.
• B) Net sales decrease and net income decreases.
• C)Operating expenses remain the same and net income decreases.
• D)Neither operating expenses, nor net income is affecteD.The journal entry includes a debit to credit card discount, which is a contra-revenue account and therefore reduces net sales, gross profit, and net income.