In this period,a company recorded sales revenue of $50,000 from sales of goods to customers who agreed to pay later.In the next period,the company received payment from customers of $45,000.Choose the TRUE statement.

Question

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Revenue was recorded in the first period when goods were sold, not in the second period when payment was received. Therefore, revenue for this period is not $45,000 (A) but $0. Accounts receivable at the end of this period will decrease to $5,000 (the difference between the sales revenue and the payment received) (not $50,000) (B). There is no information given about accounts payable, so C cannot be determined. Cash for the next period will not increase by $50,000 (D) as the company already received $45,000 in cash in the current period.

In This Period,a Company Recorded Sales Revenue of $50,000 from Sales