On November 4, Vivo Company performed services on account for R$295,000. On November 26, the company collected the balance due. The November 26 transaction will increase

Question

Quizplus · Accepted Answer

The correct answer is C because when the company collected the balance due, it received cash and decreased the Accounts Receivable. Therefore, choice C is the correct answer. Option A is incorrect because Accounts Payable is not affected by this transaction. Option B is incorrect because service revenue had already been recognized when the services were performed on account, so there is no increase in revenue. Option D is incorrect because the collection of the balance due does not decrease Service Revenue.

On November 4, Vivo Company Performed Services on Account for R$295,000