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.

Question

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The Answer of 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.

Which of the Following Statements Correctly Describes the Effect of Recording