Yancey Company granted a sales discount of $360 to a customer when it collected the amount due on account. Yancey uses the perpetual inventory system. Which of the following answers reflects the effects of the discount only on the financial statements?

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Yancey will reduce its assets (accounts receivable) and equity (sales revenue) when it grants the sales discount. The discount itself does not affect the statement of cash flows. However, cash flows will be affected when the payment is recorde

Yancey Company Granted a Sales Discount of $360 to a Customer