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    How will canceling cash discounts will effect sales, accounts receivable, bad debt, profit

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    When a firm decreases or cancels a cash discount, sales are expected to _______, the investment in accounts receivable is expected to ________, the bad debt expense is expected to __________, and the profit per unit is expected to _______.

    (a) decrease; increase; increase; increase

    (b) decrease; decrease; increase; increase

    (c) increase; increase; decrease; decrease

    (d) increase; decrease; decrease; decrease.

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    https://brainmass.com/business/auditing/canceling-cash-discounts-effect-xsales-35366

    Solution Preview

    When a firm decreases or cancels a cash discount, sales are expected to "decrease" (less ...

    Solution Summary

    The solution explains each of the four part response about the effect of decreasing or canceling cash discounts.

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