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?

Question

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When Martin Supply Service received $1,000 cash from a customer, the effect on the accounts would be that the Cash account increases and the Accounts Receivable decreases. This is because the business has now received the cash owed to them from the customer and no longer owes money for that sale. The other options, such as Accounts Payable increasing or Martin, Capital decreasing, are not applicable in this scenario as no new liabilities or investments are being made.

Martin Supply Service Received $1,000 Cash from a Customer Which