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Nicklaus Company Sold Inventory Costing $1,000 for $1,400 on Account

Question 148

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Nicklaus Company sold inventory costing $1,000 for $1,400 on account.Nicklaus Company operates under the accrual basis.What effect will the transaction have on the liabilities and owners' equity of the company?


A) no effect
B) liabilities will increase $400
C) owners' equity will increase $400
D) owners' equity will increase $1,000

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