Which of the following does not correctly describe the following journal entry?
A)Current assets decrease.
B)Gross profit decreases.
C)Net sales decreases.
D)Net income is not affecteD.The debit to the credit card discount account is a contra-revenue account, which reduces both gross profit and operating income.

Question

Which of the following does not correctly describe the following journal entry? 
A)Current assets decrease. 
B)Gross profit decreases. 
C)Net sales decreases. 
D)Net income is not affecteD.The debit to the credit card discount account is a contra-revenue account, which reduces both gross profit and operating income.

Quizplus · Accepted Answer

The Answer of Which of the following does not correctly describe the following journal entry? 
A)Current assets decrease. 
B)Gross profit decreases. 
C)Net sales decreases. 
D)Net income is not affecteD.The debit to the credit card discount account is a contra-revenue account, which reduces both gross profit and operating income.

Which of the Following Does Not Correctly Describe the Following