easy · Investment Banking accounting
A customer pays 300 in cash to settle an outstanding balance for a product delivered in the previous month.
How does this collection affect the balance sheet identity?
- Total Assets increase by 300 and Total Liabilities decrease by300.
- Cash increases by 300 and Revenue increases by300.
- Cash increases by 300 and Accounts Receivable decreases by300.
- Cash increases by 300 and Retained Earnings increases by300.
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