Redwing Company Sold Inventory Costing $500 to a Customer on Account

Redwing Company sold inventory costing $500 to a customer on account for $700.Which of the following correctly describes the collection of $686 cash when the customer takes advantage of a discount?

A) Operating expenses increase $14.
B) Accounts receivable decreases $686.
C) Current assets decrease $14.
D) Gross profit is not affected.