Question Completion Status: QUESTION 22 2 points Which of the following correctly describes the effect of a journal entry involving the recording of a sales return? Gross profit decreases Net sales increases Current assets remain the same Net income increases QUESTION 23 2 points Which of the following statements is correct? Revenue is recognized at the time of shipment when goods are shipped FOB destination Sales returns and allowances are reported as operating expenses on an income statement A seller records revenue when title and risks of ownership transfer to the buyer Sales discounts are reported as cost of sales on an income statement QUESTION 24 2 points Save Answer What statement is true with regard to the straight-line method of depreciation? O a Salvage value is not considered in straight line depreciation. b. Purchase cost is expensed in the year the asset is purchased Annual depreciation expense is higher in the earlier years and then is lower in the later years of an asset's life O d. Depreciation is recognized evenly over the asset's estimated useful life Click Save and Subordit to save and submit. Click Save All Answers to save all answers. Save All Answers Save and Submit