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QUESTION

What effect does each of the following items have on net income?

What effect does each of the following items have on net income?

  1. The owner withdrew cash from the business.
  2. Credit customers paid $3,000 on outstanding balances that were past due.
  3. The business bought equipment on account that cost $15,000.
  4. The business journalized and posted an adjustment for depreciation of equipment.
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