Echols Company sells merchandise on credit.If a customer pays its balance due after the discount period has passed,what is the effect of the payment on the seller's accounting equation?

Question

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When a customer makes a payment after the discount period, there is no net effect on the seller's accounting equation. The accounts receivable account is reduced, which decreases assets, but this is offset by the increase in cash or another payment method, resulting in no net effect on the equation.

Echols Company Sells Merchandise on Credit