Answer
There is no effect on Kimmel’s sales revenues when customers fail to take the sales discounts.
Work Step by Step
Kimmel’s net income is increased by the amount of interest (discount) earned when customers do not take the sales discounts.
Intermediate Accounting 14th Edition
by Kieso, Donald E.; Weygandt, Jerry J.; Warfield, Terry D.
Published by
Wiley
ISBN 10:
0470587237
ISBN 13:
978-0-47058-723-2
Chapter 7 - Cash and Receivables - Concepts for Analysis - Page 419: CA7-2a(2)
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