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Authentic Exposure Company Had the Following Transactions That Took Place

question 41

Short Answer

Authentic Exposure Company had the following transactions that took place during the year:
I) Recorded credit sales of $2,500
II) Collected $1,500 from customers
III) Recorded sales returns of $500 and credited the customer's account.
What is the total effect of these transactions on free cash flow?
Cash Flow
A)Increase
B)Decrease
C)No Effect
D)Cannot be determined


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