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21) Yowell Company granted a sales discount of $360 to a customer when it collected the amount due on account. Yowell uses th

The answer is C but can you explain to me why that is the answer. I'm still a little confused. Thank you!

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Answer #1

Granting Sales discounts $360
Decreases Accounts receivable i.e. $360 i.e. Assets (360)
Decrease Sales Revenue, since it is deducted from sales revenue
This decreases net income which ultimately decreases equity

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