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One of Hawk Company's Customers Returned Products That Cost Hawk

Question 88

Multiple Choice

One of Hawk Company's customers returned products that cost Hawk $500,which was sold on account for $800.Which of the following correctly describes the affect of the return on the financial statements?


A) Gross profit decreases $800.
B) Total current assets decrease $300.
C) Sales returns and allowances increase $300.
D) Net sales increase $300.

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