Question 20 (1 point)
Crabtree Company's tabular analysis at the beginning of August included the
following balances:
Assets
Liabilities
Stockholders' Equity
Cash
Accts. Rec.
Accts.
Pay.
Common
Stock
Retained Earnings
Rev.
Exp.
Beg. Bal.
$10,000
$2,000
$1,500
How would Crabtree record the collection of the receivables in the tabular analysis?
Increase Cash by $2,000 and increase Revenues by $2,000.
Decrease Cash by $1,500 and decrease Accounts Payable by $1,500.
Increase Cash by $2,000 and decrease Accounts Receivable by $2,000.
Increase Cash by $1,500 and decrease Accounts Receivable by $1,500.