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Hello students, here is a question.
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Which accounts are affected and which direction by the following business transaction? you received i .e.
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$1500 cash from a customer.
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You previously sold goods on credit.
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So, we have an options like accounts receivable increases, sales revenue increases, sales revenue decreases, cash increases, sales return and allowance decreases, cash decreases, accounts receivable decreases, sales returns and allowance increases.
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So, before this transactions, you had an account receivable for the customer of a goods sold on credit.
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When customers pay you, customer pays $1500 in cash.
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So, it will be your cash account increased to $1500.
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At the same time, your account receivable decreased to $1500...