Martin Supply Service received $1 000 cash from a customer which was owed to the business from the previous month. What is the effect of the cash receipt on the accounts of the business?
A) Cash increases; Accounts payable decreases.
B) Accounts payable increases; Owner's capital account decreases.
C) Cash account increases; Accounts receivable decreases.
D) Accounts receivable decreases; Owner's capital account decreases.
Correct Answer:
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