Bolt Enterprises receives $100,000 cash from its customers on account.Bolt uses the cash to pay off $100,000 on a bank loan,the net result is that:

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Receiving cash of $100,000 from customers in payment of their accounts will cause one asset (Cash)to increase and another asset (Accounts Receivable)to decrease.There is no change in the amount of total assets.Using the $100,000 of cash received to pay off a bank loan will cause an asset (Cash)to decrease and a liability (Notes Payable)to decrease.Considering both transactions,assets (Accounts Receivable)decrease by $100,000 and liabilities (Notes Payable)decrease by $100,000.

Bolt Enterprises Receives $100,000 Cash from Its Customers on Account