Warren Company sold inventory costing $500 to a customer on account for $700. The customer...
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Accounting
Warren Company sold inventory costing $500 to a customer on account for $700. The customer took advantage of a sales discount and paid $686 in cash for the inventory. Which of the following best describes the impact of the cash collection?
Operating expenses increase $14
Gross profit is not affected
Accounts receivable decreases $686
Current assets decrease $14
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