Which of the Following Statements Correctly Describes the Effect of Recording

question 60

Multiple Choice

Which of the following statements correctly describes the effect of recording the collection of a $10,000 account receivable for which a 2% sales discount was recorded at the time of collection?

• A)Current assets will remain the same.
• B)Gross profit will decrease $200.
• C)Accounts receivable will decrease $9,800.
• D)Net sales will increase $9,800.