On January 1,Brad Inc.sold $30,000 in products to a customer on account.Then on January 10,Brad collected the cash on that account.What is the impact on Brad's accounting equation from the collection of cash on January 10?

Question

Quizplus · Accepted Answer

The collection of cash on an account receivable does not change the total assets, as one asset (cash) increases while another asset (accounts receivable) decreases by the same amount. There is no impact on liabilities or equity; thus, there is no net effect on the accounting equation.