Dietz, Inc. sells merchandise on credit. If a customer pays its balance due within the discount period, what is the effect of the payment on Dietz's accounting equation?

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When a customer pays their balance due within the discount period, Dietz, Inc. receives cash (an asset), which decreases the accounts receivable (also an asset), with no effect on liabilities. The discount reduces the revenue (and thus, net income and retained earnings), decreasing stockholders' equity.